Tanger Outlet Centers And RioCan Real Estate Investment Trust Break Ground On
The Expansion Of Tanger Outlets Cookstown
This Expansion Brings New Brand Name & Designer Outlet Stores To The Greater
GREENSBORO, N.C., May 16, 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 the
expansion of Tanger Outlets Cookstown.
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This upscale outlet centre is located approximately 50 kms north of the
Greater Toronto area directly off Highway 400 at Highway 89, the gateway to
the highest concentration of vacation homes in Southern Ontario's "cottage
country". The region and highway is a well-traveled vacation area year-round
where Toronto residents enjoy skiing in the winter in nearby Collingwood and
lakeside activities in the summer. A thriving neighbouring community to the
city of Toronto, Cookstown shares the economic benefits of being in proximity
to Toronto's economic engine generated by its over 7 million residents and its
16 million annual tourists. It is further supported by the affluent cities of
Barrie and Newmarket.
Tanger Outlets Cookstown is currently 156,000 square feet. We expect the
approximately 152,500 square foot expansion will include over 35 leading brand
name and outlet stores including: Calvin Klein, American Eagle Outfitters,
Gap Outlet, Banana Republic Factory Store, Nike Factory Store, Tommy Hilfiger,
Aeropostale and many more.
The projected total cost of this expansion represents an estimated $60 million
dollar investment in Cookstown. The expansion will have a positive economic
impact for the area by creating an estimated 125 jobs during construction and
approximately 400 full and part-time retail jobs upon completion. Once
complete, we expect the expanded centre will create an estimated $16 million
dollars in annual sales tax.
"We are very happy to begin construction on the expansion of Tanger Outlets
Cookstown and increase the number of brand name and designer outlet stores
available to shoppers in the area," said Steven B. Tanger, President and Chief
Executive Officer of Tanger Factory Outlet Centers, Inc. "We will continue to
focus on making Tanger Outlets Cookstown a destination for stylish savings on
merchandise from our shoppers' favorite designer and brand name stores,
offering on trend, in-season, value priced merchandise direct from the
manufacturer at 30 to 70 percent off retail prices."
"The expansion of Tanger Outlets Cookstown is the next evolution for the
property designed to grow this established outlet centre into an even larger
shopping destination," said Edward Sonshine, CEO of RioCan. "The development
will be an excellent opportunity to deepen our co-ownership portfolio with
Tanger Outlet Centers and build upon RioCan's growing enclosed mall and outlet
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.
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 expand Tanger Outlets
Cookstown, the cost and size of the project, the impact on the local area in
terms of jobs and sales taxes generated, the impact on customers' shopping
experience 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 |
SOURCE: Tanger Factory Outlet Centers, Inc.
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-0- May/16/2013 17:00 GMT
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