Choice Properties Real Estate Investment Trust Provides Acquisition Update

About this update from Choice Properties Real Estate Investment Trust

[{"type":"text","content":"\n\n\n\nChoice Properties Real Estate Investment Trust Provides Acquisition Update\n\n/* Style Definitions */\nspan.prnews_span\n{\nfont-size:8pt;\nfont-family:\"Arial\";\ncolor:black;\n}\na.prnews_a\n{\ncolor:blue;\n}\nli.prnews_li\n{\nfont-size:8pt;\nfont-family:\"Arial\";\ncolor:black;\n}\np.prnews_p\n{\nfont-size:0.62em;\nfont-family:\"Arial\";\ncolor:black;\nmargin:0in;\n}\n.prntac{\nTEXT-ALIGN: CENTER\n}\n\n\n\n\n\n\n\nCanada NewsWire\nTORONTO, Dec. 5, 2017\n\n\n\n/NOT FOR DISTRIBUTION TO U.S. NEWS WIRE SERVICES OR DISSEMINATION IN THE UNITED STATES./\n\n\n\nTORONTO, Dec. 5, 2017 /CNW/ - Choice Properties Real Estate Investment Trust (\"Choice Properties\" or the \"Trust\") (TSX: CHP.UN) today completed the acquisition of a portfolio of five properties from certain subsidiaries of Loblaw Companies Limited (collectively, \"Loblaw\"). Choice Properties also provides an update on the recent acquisition of a multi-tenant property from a third-party vendor.\n\nWith the acquisition of these six properties, Choice Properties' portfolio consists of 546 properties comprising 525 retail properties, 14 industrial properties, one office complex, and six parcels of undeveloped land, totaling approximately 44.1 million square feet of GLA across Canada. \n\nPortfolio Acquisition from LoblawThe portfolio includes three Loblaw stand-alone stores, totaling approximately 244,000 square feet of Gross Leasable Area (\"GLA\") and two parcels of land on which Choice Properties expects to develop two new Loblaw food stores, totaling approximately 59,000 square feet. In addition, the portfolio offers the opportunity to develop up to 21,000 square feet of incremental retail GLA. The leases with Loblaw for the retail properties have an initial term of 15 years, with rent escalations of approximately 7.7% every five years and include multiple renewal options. \n\nThe aggregate purchase price of the portfolio was approximately $61.7 million, excluding acquisition costs. $5.3 million was attributed to the two parcels of land. The balance of $56.4 million was attributed to the three stand-alone food stores, representing an implied capitalization rate of approximately 6.4% for these properties. This acquisition was funded by cash and the issuance of 1,092,052 Class B LP Units of Choice Properties Limited Partnership, which have a value of ...

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