TORONTO, ONTARIO--(MARKET WIRE)--Jul 29, 2008 -- RioCan Real Estate Investment Trust ("RioCan") (Toronto:REI-UN.TO - News) today announced the acquisition of 1650-1660 Carling Avenue, in Ottawa, Ontario from Canadian Tire Real Estate Limited ("CTREL") for a purchase price of $40 million and capitalization rate of 6.4%.

1650-1660 Carling Avenue features a newly constructed 142,188 square foot two-storey urban retail concept. The property is anchored by a Canadian Tire that is located on the second level, a Mark's Work Wearhouse that is located on the first level, and two additional tenancies. It is located in the west end of Ottawa, with excellent frontage on Carling Avenue and Clyde Avenue. The entire facility is subject to a headlease by CTREL, which provides for a lease term of fifteen years and the net rental rate is subject to a 10% increase every five years. The property was acquired for cash and is free of debt, providing RioCan with the opportunity to arrange mortgage financing at today's low interest rates.

"The acquisition of this property in Ottawa adds to RioCan's urban portfolio and is consistent with our strategy of owning quality retail properties in Canada's high growth markets. Furthermore, it strengthens our relationship with Canadian Tire, one of Canada's leading retailers, and provides solid income growth over the next fifteen years," said Edward Sonshine, Q.C., President and CEO of RioCan.

About RioCan

RioCan is Canada's largest real estate investment trust with a total capitalization of approximately $7.6 billion. It owns and manages Canada's largest portfolio of shopping centres with ownership interests in a portfolio of 227 retail properties, including 15 under development, containing an aggregate of almost 59 million square feet. For further information, please refer to RioCan's website at www.riocan.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 concerning our objectives, our 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", "will", "expect", "intend", "estimate", "anticipate", "believe", "should", "plans" or "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.

These statements are not guarantees of future performance and are based on our estimates and assumptions that are subject to risks and uncertainties, including those described under Risks and Uncertainties in the MD&A available on www.sedar.com, which could cause our actual results to differ materially from the forward-looking statements contained herein. Those risks and uncertainties include risks associated with real property ownership, financing and interest rates, environmental matters, construction, unitholder liability, and income taxes. Material factors or assumptions that were applied in drawing a conclusion or making an estimate set out in the forward-looking information include: an increasing divergence in the general economy between eastern and western Canada; a less robust retail environment than we have seen for the last few years; interest costs to us remain relatively stable; acquisition capitalization rates increase and land costs for greenfield development decrease; a continuing and accelerating trend towards land use intensification in high growth markets; and equity and debt capital markets will continue to provide access to capital to fund at acceptable costs our future growth program and refinance our debts as they mature. Although the forward-looking information contained herein 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. All forward-looking statements in this press release are qualified by these cautionary statements. Except as required by applicable law, RioCan undertakes no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events or otherwise.

     Contacts:
     RioCan Real Estate Investment Trust
     Rags Davloor
     Senior Vice President & CFO
     (416) 642-3554
     Website: http://www.riocan.com