Choice Properties Real Estate Investment Trust is to acquire a portfolio of nine commercial properties from Loblaw Companies Limited.
In conjunction with this transaction, the REIT also intends to complete the acquisition of a single-tenant retail property, comprising approximately five thousand square feet (sq ft) of gross leasable area (GLA), from a third-party vendor before 31 December, 2013. The aggregate purchase price for both acquisitions is expected to be approximately $150 million, excluding transaction costs.
"Since the closing of our initial public offering, we have been focused on our objectives to generate stable and growing cash distributions, enhance the value of owned assets and grow our asset base. Today, we are pleased to announce the acquisition of a portfolio of high-quality, retail-focused commercial properties that are located in prime locations and provide potential for site intensification and rent growth," says John Morrison, President and Chief Executive Officer, Choice Properties. "This portfolio of properties builds on our ability to grow our portfolio in an accretive way and marks the first two site intensification projects in our development program."
Upon completion of these acquisitions, Choice Properties' portfolio will consist of 435 properties comprising 425 retail properties, nine warehouse properties and one office complex, totalling approximately 36.2 million square feet across Canada.
The transaction with Loblaw is subject to customary closing conditions for transactions of this size and type, and is expected to be completed on or about 22 October, 2013. The acquisitions are expected to be funded by issuing Class B LP Units of Choice Properties Limited Partnership and cash.