TORONTO — Tanger Factory Outlet Centers and RioCan Real Estate Investment Trust have broken ground on a $60 million, 152,500-square-foot expansion of Tanger Outlets Cookstown, located about 30 miles north of the greater Toronto area. An official groundbreaking ceremony took place Thursday.
The expansion will include more than 35 brand name and outlet stores such as Calvin Klein, American Eagle Outfitters, Gap Outlet, Banana Republic Factory Store, Nike Factory Store, Tommy Hilfiger, Aeropostale and more. The upscale outlet center currently spans 156,000 square feet.
Tanger Outlets Cookstown is situated off Highway 400 at Highway 89, the gateway to the highest concentration of vacation homes in Southern Ontario's “cottage country.” The region 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.
Cookstown, a town in Southern Ontario, shares the economic benefits of being in proximity to Toronto and its more than 7 million residents and 16 million annual tourists, say company officials.
“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,” says Steven Tanger, president and CEO of Greensboro, N.C.-based Tanger Factory Outlet Centers (NYSE: SKD).
“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 in-season, value-priced merchandise direct from the manufacturer at 30 to 70 percent off retail prices,” adds Tanger.
The expansion will create an estimated 125 jobs during construction and approximately 400 full and part-time retail jobs upon completion, according to Tanger. Once complete, the company expects the expanded retail center will create an estimated $16 million dollars in annual sales tax.
“The expansion of Tanger Outlets Cookstown is the next evolution for the property designed to grow this established outlet center into an even larger shopping destination,” says 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 center portfolio.”
RioCan, Canada's largest REIT, owns and manages that country’s biggest portfolio of shopping centers with ownership interests in 344 retail properties containing more than 84 million square feet. Included in that mix are 50 grocery-anchored and new-format retail centers containing 13.7 million square feet in the United States through various joint venture arrangements. RioCan's portfolio also includes 11 properties under development in Canada.
A publicly traded REIT, Tanger Factory Outlet Centers operates or has an ownership interest in a portfolio of 43 upscale outlet shopping centers in 26 states and Canada. The portfolio includes approximately 12.9 million square feet leased to more than 2,700 stores.
More than 175 million shoppers visit Tanger Factory Outlet Centers annually, according to the company.
Tanger’s stock price closed Thursday at $37.90 per share, up from $32.05 per share a year ago.
— Matt Valley