Construction Begins on Tanger Outlets Ottawa

Tanger Factory Outlet Centers, Inc. and RioCan Real Estate Investment Trust hosted an official Ground Breaking Ceremony today to announce that construction has begun on Tanger Outlets Ottawa. When complete, we expect that Phase I of the project will be home to approximately 293,000 square feet of branded factory outlet retailers from the U.S. and Canada.

As the capital of Canada and the fourth largest city in the country, with 1.2 million residents and 7.5 million visitors annually, we believe Ottawa is the ideal location for the first ground-up construction of a Tanger Outlet in the Canadian market. Tanger and RioCan currently co-own outlets in Cookstown, Ontario, Bromont, Quebec, and St. Sauveur, Quebec.

The upscale outlet project will be located off the TransCanada Highway (Highway 417) at Palladium Drive. The site is located in the suburban area of Kanata and will benefit from its access to the greater Ottawa market. The concept, design and merchandising of the Ottawa centre will be similar to those within the successful, established Tanger portfolio of outlet centres in the United States.

Tanger Outlets offers consumers the opportunity to purchase merchandise that is on trend and in- season from leading designer and brand name manufacturers at a savings of 30 to 70 percent off retail prices. We expect the centre will include over 80 leading brand name and outlet stores including: American Eagle Outfitters, Gap Outlet, Banana Republic Factory Store, Calvin Klein, Nike Factory Store, Tommy Hilfiger, Aeropostale and many more.

The projected total cost of this ground up construction project represents an estimated $120 million dollar investment in Ottawa. The new centre will have a positive economic impact for the area by creating an estimated 700 jobs during construction and approximately 1,000 full and part-time retail jobs upon completion. Once complete, we believe the centre will create an estimated $15 million dollars in annual sales tax.

"We are excited to begin construction on this dynamic new centre in the Ottawa market and look forward to bringing the Tanger Outlets shopping experience to local residents as well as area tourists," said Steven B. Tanger, President and Chief Executive Officer of Tanger Factory Outlet Centers, Inc. "The centre co-owned by Tanger and RioCan will deliver new brand name outlet stores to the market as we strive to continue to elevate the shopping experience for our Canadian customers."

"The Ottawa Tanger Outlet Centre development represents an excellent opportunity for RioCan and Tanger to extend our relationship as we develop the Tanger Outlet experience here in Canada," said Edward Sonshine, CEO of RioCan. "This development, our fourth shopping centre together, will bring an exciting and new shopping experience that to date has not previously been available in Ottawa and surrounding areas."