Choice Properties Real Estate Investment Trust Completes Acquisition of Retail Portfolio from Loblaw Companies Limited

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[{"type":"text","content":"\n\n\n/NOT FOR DISTRIBUTION TO U.S. NEWS WIRE SERVICES OR DISSEMINATION IN THE\n UNITED STATES./\n\n\nBRAMPTON, ON, May 6, 2014 /CNW/ - Choice Properties Real Estate\n Investment Trust (\"Choice Properties\" or the \"Trust\") (TSX: CHP.UN)\n today completed an acquisition of a portfolio of 20 retail properties\n from certain subsidiaries of Loblaw Companies Limited (collectively,\n \"Loblaw\"). The aggregate purchase price for the portfolio was\n approximately $200 million, excluding transaction costs.\n\n\nHighlights of Acquired Portfolio:\n\n\n\nExpands portfolio by more than 1.2 million square feet (\"sq. ft.\") of Gross Leasable Area\n (\"GLA\"), with an occupancy rate of 97.9%;\n\n\nLocated across Canada and consists of 14 Loblaw bannered stand-alone supermarkets and 6\n Loblaw-anchored retail sites with other ancillary tenants;\n\n\nOffers potential for intensification and future re-development, including the potential to develop 20,000 to 40,000 sq. ft. of\n incremental GLA within five years; and\n\n\nImmediately accretive with an estimated stabilized net operating income (\"NOI\") of\n approximately $13 million, representing an overall year-one\n capitalization rate of 6.50%.\n\n\n\n\"We are pleased to announce the accretive acquisition of a portfolio of\n high-quality, retail properties that are located across Canada and\n provide the potential for future site intensification and rental\n growth. The acquisition of these properties represents a key component\n of our growth strategy and is a strong fit with our existing\n portfolio,\" said John Morrison, President and Chief Executive Officer,\n Choice Properties. \"We remain focused on driving growth and creating\n value through development, acquisitions and active management.\"\n\n\nWith the completion of this acquisition, Choice Properties' portfolio\n consists of 456 properties comprising 444 retail properties, nine\n warehouse properties, one office complex, one industrial property and\n one parcel of land, totaling approximately 37.6 million square feet\n across Canada.\n\n\nThe acquisition was funded through the issuance of 11,259,208 Class B LP\n Units of Choice Properties Limited Partnership, which has a total\n dollar value of $119.6 million and the balance was settled in cash.\n Class B LP Units of Choice Properties Limited Partnership are\n exchangeable into,...

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