Target Corp. Settles Abandoned Canadian Leases

TORONTO—RioCan Real Estate Investment Trust said Monday it had reached a settlement with Target Corp. over 18 leases the Minneapolis-based retail giant abandoned when it exited the Canadian market this year.

RioCan, which owns and manages the largest portfolio of shopping centers in Canada, said Target paid 132 million Canadian dollars (US$99 million) as part of the settlement, including C$92 million to RioCan and the balance to various co-owners. Target in turn has been released from indemnity agreements covering those locations.

Target had 26 leases with RioCan when it decided in January to close the more than 130 stores it had in Canada. The REIT said in June that the Canadian unit of Lowe's Cos. and Toronto-based retailer Canadian Tire Corp. agreed to take up to eight former Target store locations. It said Monday that six locations had been assigned to Lowe's and one to Canadian Tire, and that it was working to fill the remaining 19 premises.

"The proceeds of the settlement will be utilized by RioCan and its co-owners to mitigate losses caused by Target Canada's departure and disclaimer of the subject Leases," the REIT said.

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(END) Dow Jones Newswires

November 23, 2015 14:15 ET (19:15 GMT)

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