RioCan Real Estate Investment Trust And Tanger Outlets To Acquire Two Outlet Malls in Montreal for $94.7 Million

  

Les Factoreries St. Sauveur outlet center, Montreal

 TORONTO and GREENSBORO, N.C., Oct. 30, 2012 /PRNewswire/ -- RioCan Real Estate Investment Trust ("RioCan") (TSX: REI.UN) and Tanger Factory Outlet Centers, Inc. ("Tanger") (NYSE: SKT), through their co-ownership agreement, announced today they have waived conditions to acquire two outlet centres in the Montreal area, Les Factoreries St. Sauveur and Bromont Outlet Mall.

 The co-owners will purchase the properties on a 50/50 basis at an expected aggregate purchase price of $94.7 million (Canadian dollar, at 100%).  RioCan will provide development and property management services and Tanger will provide leasing and marketing services.

Bromont Outlet Mall development site

The co-owners intend to add value to the properties by implementing their operational and marketing programs and re-branding the properties under the Tanger Outlets flag.

The purchase price includes the assumption of the aggregate in place financing at Les Factoreries St. Sauveur of $18.8 million (Canadian dollar, at 100%) which carries a weighted average interest rate of 5.7% and matures in 2015 and 2020.

Bromont Outlet Mall is being acquired free and clear of financing.  Both transactions are scheduled to close in November 2012. The acquisition of these centers will enable the co-owners to expand beyond the Greater Toronto Area and implement their outlet center strategy immediately, as Tanger Outlet Centers enter into another Canadian market.

For a complete copy of the company’s news release, please contact:

RioCan Real Estate Investment Trust

Rags Davloor

Senior Vice President & CFO

(416) 642-3554

Tanger Factory Outlet Centers, Inc.

Frank Marchisello

Executive Vice President and CFO

(336) 834-6834