Canadian Mall Operator Moves into U.S. Market

Includes: CDR, RIOCF
by: Streetwise Blog

By Steve Ladurantaye

Canada’s largest shopping mall owner now owns property in the U.S., with the closing of two deals in Pennsylvania.

RioCan (OTCPK:RIOCF) created a joint venture with Cedar Shopping Centers (NYSE:CDR) last month (RioCan owns 80%), and the two malls in Harrisburg and Dickson City are the first properties to change hands. Five more properties were involved in the deal, but those deals haven’t closed yet. They are expected to close in early 2010.

RioCan has been active raising money this year, most recently tapping the markets for $100 million in late November. It’s been willing to spend, as well - the Pennsylvania properties are part of a $141 million deal, while it also announced a $170 million acquisition of eight Canadian retail properties last month.

It also said it has deals in its pipeline that could cost as much as $335 million over the next year, though it stressed the transactions are still going through due diligence and may not happen.