RioCan REIT Announces Grand Opening of MeadowlandsEntertainment Centre.

TORONTO--(BUSINESS WIRE)--Dec. 4, 1997--(TSE:REI.UN.) RioCan Real Estate Investment Trust ("RioCan") (TSE - REI.UN) and its 50 percent joint venture partner, Trinity Development Group Inc.("Trinity"), today announced the opening of the first phase of the Meadowlands Entertainment Centre in Ancaster,

The Meadowlands Entertainment Centre is adjacent to the Meadowlands II Power Centre, which is the home of such national retailers as K-Mart, Price Club and Home Depot, and the two sites will appear to operate as one regional power centre.

Construction of the 34,000 square foot second phase will commence in early 1998, and is already virtually fully pre-leased to such national tenants as Danier Leather and Globo Shoes.

As a result of the quick and successful lease-up of this project to primarily national tenants, RioCan and Trinity have also agreed to acquire an additional 6 acres adjacent to the Meadowlands Entertainment Centre, upon which the third phase of this complex will be constructed. Construction of the third phase will commence upon minimum pre-leasing targets being achieved and is expected sometime in 1998.

Edward Sonshine, President & CEO, said, "We are extremely gratified by the success of this project and look forward to its further expansion. This centre will now be earning substantial income for our unitholders and is but one of a number of similar projects which RioCan expects to complete in 1998 and from which much of our future growth will be derived."

RioCan currently has ownership interests in a portfolio of 72 commercial properties of which 63 are shopping centres, 5 are office and industrial income properties and 4 are joint venture retail centres under development across Canada. The shopping centres contain an aggregate of 8.35 million square feet of gross leasable area and a further 700,000 square feet upon completion of the retail centres under development. RioCan's primary investment objective is the long-term maximization of cash flow and capital appreciation of its portfolio. It achieves this by proactively managing its existing properties, seeking accretive acquisition and expansion opportunities and undertaking development activities on a selective basis.

CONTACT: RioCan Real Estate Investment Trust

Edward Sonshine, Q.C., 416/ 866-3018