Cedar Shopping Centers Inc. and RioCan Real EstateTrust, through an existing joint venture, have entered into a definitive purchase agreement to purchase seven properties for $200 million from PREIT.
The transaction has three parts. The first part includes five anchored shopping centers for $134 million. A sixth property is subject to certain conditions, including terms of an existing partnership between a third party joint-venture partner and PREIT. All six of those properties will be purchased by the existing Cedar (20 percent) and RioCan (80 percent) joint venture.
On the seventh property, Cedar and RioCan will own the property on a 50-50 basis (through separate joint venture arrangements) with the expectation that the parties will eventually redevelop this property. Closing of the purchase of that property is subject to reaching agreement with a third-party joint venture partner of PREIT.
Certain "earn-out" arrangements for-up of vacant premises during the next two years could potentially result in a further increase of the aggregate purchase price.
Three of the initial five properties to be acquired by the Cedar/RioCan joint venture are located in Pennsylvania, one in New Jersey, and one in Virginia. The remaining two properties potentially to be acquired are also in Pennsylvania. Four of the properties are anchored or shadow-anchored by supermarkets or a "club" store.
The aggregate owned-GLA of the initial five properties is approximately 936,000 square feet; for the seven properties the total owned-GLA is approximately 1.8 million square feet.