Cedar Shopping Centers, Inc. (NYSE:CDR) said Monday that it plans to purchase up to seven shopping centers for approximately $200 million, with all but one deal expected to close by the end of the year.
The definitive purchase, on behalf of a joint venture with RioCan Real Estate Investment Trust of Toronto, Canada, calls for the purchase of five anchored shopping centers from Pennsylvania Real Estate Investment Trust for approximately $134 million.
The five, including Monroe Marketplace, Creekview Shopping Center and Pitney Road Plaza, all in Pennsylvania, as well as Sunrise Plaza in New Jersey and New River Valley Center in Virginia, total approximately 936,000 square feet and feature 97% occupancy.
Cedar CEO Leo S. Ullman said Cedar and RioCan are “delighted” to acquire the “strongly-anchored” properties.
“These properties will greatly enhance the portfolio of the Cedar/RioCan joint venture, with an overwhelming preponderance of credit tenants including a number of supermarket and club anchors in strong, high demographic markets,” he said.
The properties will be acquired by the existing Cedar and RioCan joint venture, of which RioCan holds 80%.
Cedar has also agreed to purchase from the Pennsylvania trust fund a seventh property, which will be owned by Cedar and RioCan on a 50-50 basis, with the expectation that the two will eventually redevelop the property, though that is subject to agreement by a third-party partner.
The remaining two potential properties would be located in Pennsylvania, and those, together with the initial five, would total about 1.8 million square feet.
The aggregate cost of all seven properties would be about $200 million, exclusive of closing costs and adjustments, and six of the seven are expected to close by the end of the year.
Purchase of additional property is subject to certain conditions, including terms of an existing partnership between a third-party joint-venture partner of the Pennsylvania trust fund.