RioCan to buy 22 properties from Kimco; ends joint venture

Thu Sep 24, 2015 10:29am EDT
 
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Sept 24 (Reuters) - Canada's RioCan Real Estate Investment Trust will end a joint venture with Kimco Realty Corp and buy its stake in 22 Canadian properties for C$715 million ($533.66 million).

The 15-year-old joint venture managed 35 properties in Canada, including three that were previously occupied by Target Corp, the companies said in a joint statement.

The two companies plan to sell 10 properties as part of the plan to end the joint venture. The remaining three properties will be dealt with at a later date, the companies said.

RioCan Chief Executive Edward Sonshine said the acquisition would increase the company's exposure to Canada's six largest markets, including Toronto.

RioCan, the largest real estate investment trust in Canada, will also assume Kimco's share of existing debt, the company said. ($1 = 1.3398 Canadian dollars) (Reporting by Anannya Pramanick in Bengaluru; Editing by Anil D'Silva)