Cedar Shopping Centers and RioCan Close on Two Joint Venture Properties

PORT WASHINGTON, N.Y., Dec. 14  /PRNewswire-FirstCall/ -- Cedar Shopping Centers, Inc. (NYSE:CDR) today announced that it and RioCan Real Estate Investment Trust ("RioCan") have closed on the transfer to a joint venture owned 80% by RioCan and 20% by Cedar of two properties previously owned by Cedar.  The properties are Blue Mountain Commons in Harrisburg, Pennsylvania, a  121,000 sq. ft. shopping center anchored by a 98,000 sq. ft. Giant Food Stores supermarket and Sunset Crossing in Dickson City, Pennsylvania, a 74,000 sq. ft. shopping center anchored by a 54,000 sq. ft. Giant Food Stores supermarket.

The Blue Mountain Commons property is a ground-up development by Cedar at which the Giant Food Stores supermarket opened for business on October 28, 2009.  Other tenants include PNC Bank and Sonic.  The shopping center property transferred to the joint venture does not include development rights with respect to approximately 12 adjacent acres retained by Cedar.

The Blue Mountain Commons property had been included in the collateral pool for Cedar's $150 million secured revolving development facility for development properties due June 2011 (with a one-year extension option).  Sunset Crossing had been included in the collateral pool for Cedar's secured revolving credit facility for stabilized properties (which, as announced, has recently been extended at $265 million for a two-year period to January 2012, with a one-year extension option).

The two properties transferred represent initial transfers under the joint venture agreement between Cedar and RioCan, as previously announced, with respect to seven properties heretofore owned by Cedar.  Transfers of the remaining five properties to the joint venture are subject to lender approvals and are expected to close during the first quarter 2010.

The transfer of these two properties to the Cedar/RioCan joint venture has resulted in net cash proceeds to Cedar of approximately $32 million which have been applied to reduce the outstanding balances under the Company's credit facilities.

About Cedar Shopping Centers, Inc.

Cedar Shopping Centers, Inc. is a fully-integrated real estate investment trust which focuses primarily on ownership, operation, development and redevelopment of "bread and butter"® supermarket-anchored shopping centers in coastal mid-Atlantic and New England states. The Company presently owns and operates approximately 13.1 million square feet of GLA at 122 shopping center properties, of which more than 75% are anchored by supermarkets and/or drugstores with average remaining lease terms of approximately 11 years. The Company's stabilized properties have an occupancy rate of approximately 95%.  The Company has also announced a pipeline of seven additional substantially pre-leased primarily supermarket- and drugstore-anchored development properties.

For additional financial and descriptive information on the Company, its operations and its portfolio, please refer to the Company's website at http://www.cedarshoppingcenters.com/.

Forward-Looking Statements

Statements made or incorporated by reference in this press release include certain "forward-looking statements".  Forward-looking statements include, without limitation, statements containing the words "anticipates", "believes", "expects", "intends", "future", and words of similar import which express the Company's beliefs, expectations or intentions regarding future performance or future events or trends. While forward-looking statements reflect good faith beliefs, expectations, or intentions, they are not guarantees of future performance and involve known and unknown risks, uncertainties and other factors, which may cause actual results, performance or achievements to differ materially from anticipated future results, performance or achievements expressed or implied by such forward-looking statements as a result of factors outside of the Company's control. Certain factors that might cause such differences include, but are not limited to, the following: real estate investment considerations, such as the effect of economic and other conditions in general and in the Company's market areas in particular; the financial viability of the Company's tenants (including an inability to pay rent, filing for bankruptcy protection, closing stores and vacating the premises); the continuing availability of acquisition, development and redevelopment opportunities, on favorable terms; the availability of equity and debt capital (including the availability of construction financing) in the public and private markets; the availability of suitable joint venture partners and potential purchasers of the Company's properties if offered for sale; changes in interest rates; the fact that returns from acquisition, development and redevelopment activities may not be at expected levels or at expected times; risks inherent in ongoing development and redevelopment projects including, but not limited to, cost overruns resulting from weather delays, changes in the nature and scope of development and redevelopment efforts, changes in governmental regulations relating thereto, and market factors involved in the pricing of material and labor; the need to renew leases or re-let space upon the expiration or termination of current leases and incur applicable required replacement costs; and the financial flexibility to repay or refinance debt obligations when due and to fund tenant improvements and capital expenditures. 

DATASOURCE: Cedar Shopping Centers, Inc.



CONTACT:  Leo S. Ullman, Chairman, CEO and President, Cedar Shopping

Centers, Inc., [phone], 



Web Site:  http://www.cedarshoppingcenters.com/ 

Copyright