RioCan Adds a Partner

Article Excerpt

RIOCAN REAL ESTATE INVESTMENT TRUST $22.86 (Toronto symbol REI.UN; SI Rating: Average) has agreed to form a joint venture with a U.S.-based finance company that will invest up to $500 million in real-estate assets. Like a similar fund that RioCan headed up in 2003, this one will focus on distressed retail properties that it can refurbish and sell for a profit. RioCan will commit $50 million to the new fund. Investing in turnaround properties through private funds like these gives RioCan a chance to earn higher returns compared to its traditional retail properties, at minimal risk. In addition, RioCan also earns fees for managing the new assets. RioCan already has alliances to acquire and manage properties with Kimco Realty, Ontario Municipal Employees Retirement System (OMERS), and the Canada Pension Plan Investment Board. RioCan is still a buy. buy…

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