Blackstone fund buys U.S. property portfolio from RioCan

|About: RioCan Real Estate Inves... (RIOCF)|By:, SA News Editor

After completing a strategic review of its U.S. operations, RioCan (OTCPK:RIOCF) agrees to sell its U.S. portfolio of 49 retail properties in the Northeast and Texas for $1.9B to Blackstone (NYSE:BX) Real Estate Partners VIII.

The sale will ensure ample funds with which to make its just-announced purchase from Kimco and to significantly deleverage the company balance sheet.

The sale price represents an increase in value of about C$930M over the cost of the properties (which were acquired between 2009 and 2015), or an estimated IRR of roughly 16%.

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