Tanger Outlet Centers and RioCan Real Estate Investment Trust Break Ground on
Tanger Outlets Ottawa
Construction Begins On This World Class Outlet Centre Serving The Greater
Kanata And Ontario Markets
GREENSBORO, N.C., May 15, 2013 /CNW/ - Tanger Factory Outlet Centers, Inc.
(NYSE:SKT) and RioCan Real Estate Investment Trust hosted an official Ground
Breaking Ceremony today to announce that construction has begun on Tanger
Outlets Ottawa. When complete, we expect that Phase I of the project will be
home to approximately 293,000 square feet of branded factory outlet retailers
from the U.S. and Canada.
(Photo: http://photos.prnewswire.com/prnh/20130515/CL13992 ) (Photo:
http://photos.prnewswire.com/prnh/20130515/CL14211-b ) (Photo:
http://photos.prnewswire.com/prnh/20130515/CL14211-c ) (Logo:
As the capital of Canada and the fourth largest city in the country, with 1.2
million residents and 7.5 million visitors annually, we believe Ottawa is the
ideal location for the first ground-up construction of a Tanger Outlet in the
Canadian market. Tanger and RioCan currently co-own outlets in Cookstown,
Ontario, Bromont, Quebec, and St. Sauveur, Quebec.
The upscale outlet project will be located off the TransCanada Highway
(Highway 417) at Palladium Drive. The site is located in the suburban area of
Kanata and will benefit from its access to the greater Ottawa market. The
concept, design and merchandising of the Ottawa centre will be similar to
those within the successful, established Tanger portfolio of outlet centres in
the United States.
Tanger Outlets offers consumers the opportunity to purchase merchandise that
is on trend and in- season from leading designer and brand name manufacturers
at a savings of 30 to 70 percent off retail prices. We expect the centre will
include over 80 leading brand name and outlet stores including: American
Eagle Outfitters, Gap Outlet, Banana Republic Factory Store, Calvin Klein,
Nike Factory Store, Tommy Hilfiger, Aeropostale and many more.
The projected total cost of this ground up construction project represents an
estimated $120 million dollar investment in Ottawa. The new centre will have a
positive economic impact for the area by creating an estimated 700 jobs during
construction and approximately 1,000 full and part-time retail jobs upon
completion. Once complete, we believe the centre will create an estimated $15
million dollars in annual sales tax.
"We are excited to begin construction on this dynamic new centre in the Ottawa
market and look forward to bringing the Tanger Outlets shopping experience to
local residents as well as area tourists," said Steven B. Tanger, President
and Chief Executive Officer of Tanger Factory Outlet Centers, Inc. "The centre
co-owned by Tanger and RioCan will deliver new brand name outlet stores to the
market as we strive to continue to elevate the shopping experience for our
"The Ottawa Tanger Outlet Centre development represents an excellent
opportunity for RioCan and Tanger to extend our relationship as we develop the
Tanger Outlet experience here in Canada," said Edward Sonshine, CEO of RioCan.
"This development, our fourth shopping centre together, will bring an exciting
and new shopping experience that to date has not previously been available in
Ottawa and surrounding areas."
About RioCan: RioCan is Canada's largest real estate investment trust with a
total capitalization of approximately $14.4 billion as of March 31, 2013. It
owns and manages Canada's largest portfolio of shopping centres with ownership
interests in a portfolio of 344 retail properties containing more than 84
million square feet, including 50 grocery anchored and new format retail
centres containing 13.7 million square feet in the United States through
various joint venture arrangements as at March 31, 2013. RioCan's portfolio
also includes 11 properties under development in Canada. For further
information, please refer to RioCan's website at www.riocan.com.
About Tanger Factory Outlet Centers, Inc.: Tanger Factory Outlet Centers,
Inc. is a publicly-traded REIT headquartered in Greensboro, North Carolina
that operates and owns, or has an ownership interest in, a portfolio of 43
upscale outlet shopping centres in 26 states coast to coast and in Canada,
totaling approximately 12.9 million square feet leased to over 2,700 stores
operated by more than 460 different brand name companies. More than 175
million shoppers visit Tanger Factory Outlet Centers annually. For more
information on Tanger Outlet Centers, call 1-800-4TANGER or visit the
company's web site at www.tangeroutlet.com.
Forward-looking Information This News Release contains forward-looking
statements within the meaning of applicable securities laws. These statements
include, but are not limited to, statements regarding RioCan's and Tanger's
intention to construct Tanger Outlets Ottawa, the cost and size of the
project, the impact on the local area in terms of jobs and sales taxes
generated, and other statements concerning each company's objectives, its
strategies to achieve those objectives, as well as statements with respect to
management's beliefs, plans, estimates, and intentions, and similar statements
concerning anticipated future events, results, circumstances, performance or
expectations that are not historical facts. Forward-looking statements
generally can be identified by the use of forward-looking terminology such as
"outlook", "objective", "may", "expect", "intend", "estimate", "anticipate",
"believe", "should", "plan", "continue", or similar expressions suggesting
future outcomes or events. Such forward-looking statements reflect
management's current beliefs and are based on information currently available
to management. All forward-looking statements in this News Release are
qualified by these cautionary statements. These forward-looking statements are
not guarantees of future events or performance and, by their nature, are based
on each company's current estimates and assumptions, which are subject to
risks and uncertainties.
For a list of risks and uncertainties described affecting RioCan, see those
described under "Risks and Uncertainties" in RioCan's latest financial
statements and RioCan's Management's Discussion and Analysis for the period
ended March 31, 2013, which could cause actual events or results to differ
materially from the forward-looking statements contained in this News Release.
Those risks and uncertainties include, but are not limited to, those related
to: liquidity in the global marketplace associated with economic conditions,
tenant concentrations, occupancy levels, access to debt and equity capital,
interest rates, joint ventures/partnerships, the relative illiquidity of real
property, unexpected costs or liabilities related to acquisitions,
construction, environmental matters, legal matters, reliance on key personnel,
unitholder liability, income taxes, the investment in the United States of
America ("US"), fluctuations in the currency exchange rate between the
Canadian and US dollar and RioCan's qualification as a real estate investment
trust for tax purposes. Material factors or assumptions that were applied in
drawing a conclusion or making an estimate set out in the forward-looking
information may include, but are not limited to: a stable retail environment;
relatively low and stable interest costs; a continuing trend toward land use
intensification in high growth markets; access to equity and debt capital
markets to fund, at acceptable costs, the future growth program to enable the
Trust to refinance debts as they mature; the availability of purchase
opportunities for growth in Canada and the US; and the impact of accounting
principles adopted by the Trust effective January 1, 2011 under International
Financial Reporting Standards ("IFRS"). Although the forward-looking
information contained in this News Release is based upon what management
believes are reasonable assumptions, there can be no assurance that actual
results will be consistent with these forward-looking statements. Certain
statements included in this News Release may be considered "financial outlook"
for purposes of applicable securities laws, and such financial outlook may not
be appropriate for purposes other than this News Release.
The Income Tax Act (Canada) (the "Act") contains legislation affecting the tax
treatment of publicly traded trusts (the "SIFT Legislation"). The SIFT
Legislation will not impose tax on a trust which qualifies under such
legislation as a real estate investment trust (the "REIT Exception"). RioCan
currently qualifies for the REIT Exception and intends to continue to qualify
for future years. Should this not occur, certain statements contained in this
News Release may need to be modified.
For a more detailed discussion of the factors that affect Tanger's operating
results, interested parties should review the Tanger Factory Outlet Centers,
Inc. Annual Report on Form 10-K for the fiscal year ended December 31, 2012.
Such factors include, but are not limited to, the risks associated with
general economic and local real estate conditions, Tanger's ability to meet
its obligations on existing indebtedness or refinance existing indebtedness on
favorable terms, the availability and cost of capital, Tanger's ability to
lease its properties or to meet its minimum pre-leasing hurdles on proposed
new developments, Tanger's inability to collect rent due to the bankruptcy or
insolvency of tenants or otherwise, and competition.
Contact: Quentin Pell 214-600-3838 email@example.com
PRN Photo Desk, firstname.lastname@example.org
SOURCE: Tanger Factory Outlet Centers, Inc.
To view this news release in HTML formatting, please use the following URL:
CO: Tanger Factory Outlet Centers, Inc.
ST: North Carolina
-0- May/15/2013 17:00 GMT
Press spacebar to pause and continue. Press esc to stop.