Choice Properties Real Estate Investment Trust Provides Update on Three Recently Acquired Retail Properties

About this update from Choice Properties Real Estate Investment Trust

[{"type":"text","content":"\n\n/NOT FOR DISTRIBUTION TO U.S. NEWS WIRE SERVICES OR DISSEMINATION IN THE UNITED STATES./\n\n\n\nTORONTO, Aug. 25, 2015 /CNW/ - Choice Properties Real Estate Investment Trust (\"Choice Properties\" or the \"Trust\") (TSX: CHP.UN) provided today an update on the recent acquisition of three retail properties. Leveraging its alliance with its principal tenant, Choice Properties acquired two standalone pharmacies from Shoppers Drug Mart Corporation, a subsidiary of Loblaw Companies Limited.  The third property was acquired from a third party vendor, and is located adjacent to an existing Choice Properties owned standalone food store site. These three acquisitions increased the total portfolio size to 515 properties, or 41.4 million square feet. \n\nAcquisition of Shopper Drug Mart Pharmacies\n\nOn August 20, 2015, Choice Properties completed the acquisition of two Shoppers Drug Mart standalone pharmacies located at 1428 Highway West, Courtice and 9186 Highway 93 South, Midland in Ontario.  The purchase price for the two properties was approximately $18.2 million, excluding transaction costs. The acquisition was immediately accretive with a total stabilized Net Operating Income (\"NOI\") of approximately $1.1 million, representing an implied capitalization rate of 6.16%. The acquisition was funded through the issuance of 280,155 Class B LP Units of Choice Properties Limited Partnership, which have a value of $3.2 million, and the balance in cash.\n\n1428 Highway 2 West in Courtice is a 30,309 square foot two-storey retail building and 9185 Highway 93 South in Midland is an 18,329 square foot single-storey retail building.  Both properties are 100% occupied by Shoppers Drug Mart, each with a 20-year initial lease term and five five-year renewal options.\n\nAcquisition of 3020 Elmcreek Road, Mississauga, ON\n\nOn August 11, 2015, Choice Properties acquired a 12,023 square foot single-storey retail building adjacent to an existing Choice Properties owned site located at 3045 Mavis Road, Mississauga. The property is currently 100% occupied by a Liquor Control Board of Ontario (LCBO) store.  The total purchase price for 3020 Elmcreek Road, Mississauga was approximately $5.6 million, excluding transaction costs.  The acquisition was immediately accretive with a stabilized NOI of approximately $337 thousand, repr...

More updates from Choice Properties Real Estate Investment Trust