- Cedar will acquire RioCan's 80% ownership interest in Franklin Village located in Franklin Massachusetts for approximately $60.1 million including the assumption of the related in-place mortgage financing of $34.7 million.
- Cedar will sell its 20% ownership interest in the remaining twenty-one joint venture properties for approximately $119.5 million including the assumption of related in-place mortgage financings of $54.4 million.
- Valuation of all properties is based upon a 6.5% capitalization rate.
- Cedar will receive approximately $39.0 million of cash as well as a distribution of the Company's share of working capital in the joint venture.
- Cedar intends to use the cash proceeds to repay mortgage obligations with a weighted-average interest rate of 6.5% that are pre-payable during the fourth quarter of 2012 and the first quarter of 2013.
- Cedar will continue to manage the properties acquired by RioCan and receive management related fees, subject to a one-year management agreement terminable by RioCan on 90 days notice.
- Cedar is implementing over the next twelve months cost reduction measures, consisting primarily of employee headcount reductions and third party vendor cost savings aggregating between $2.0 and $2.5 million per year.
Cedar Realty Trust Exits Joint Venture With RioCan
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