Riocan Real Estate Buys Another Property Near Toronto. Tanger and Riocan also Developing Shopping Centre in Kanata.

Riocan Real Estate, Canada's largest real estate investment trust, has partnered with American firm Tanger Factory Outlet Centers to buy the Cookstown Outlet Mall.

Riocan and Tanger are paying $62 million for the property, which is located approximately 50 km north of Toronto. The property consists of 161,000 square feet of retail space and Riocan will provide the development and property management services for the location.

Riocan and Tanger are also partnering to develop 50 acres of land in Kanata Ontario, which will greatly benefit from the Ottawa market.

Riocan is now the largest real estate investment trust in Canada with a total market capitalization of almost $12 billion. For investors, it currently yields about 5.5%, and has been increasing distributions at a fairly steady pace for years. The commercial property market in Canada has been healthy as of late, and the Canadian consumer has proved particularly vibrant by comparison to those in the United States. This has boded very well for Riocan and its owners.

Full Disclosure: Matthew J.W. Clarke owns or indirectly controls shares in Riocan Real Estate.