Business
Calloway acquires an additional five million square feet of retail space
Calloway acquires an additional five million square feet of retail space.
About this update from Smartcentres Real Estate Investment Trust
[{"type":"text","content":"\n\n\n\nTORONTO, Dec. 12 /CNW/ - Calloway Real Estate Investment Trust (TSX:\nCWT.UN) announced it has completed the internalization of its property\nmanagement business and the acquisition of seven properties and has entered\ninto long-term leases on an additional four properties, partially completing\nits previously announced transaction with SmartCentres. Five shopping centres\nremain under contract and are scheduled to close by December 31, 2006.\n\n\nUpon completion of the property acquisitions, Calloway will have acquired\nnine operating shopping centres, containing 1.6 million square feet of leased\narea and 0.6 million square feet of expansion potential, and 7 development\nproperties with 1.8 million of potential leaseable area.\n\n\nThe total consideration of the transaction includes approximately\n$380 million for the operating properties at an estimated yield of\napproximately 6.1%, $46 million for the undeveloped land and $14 million for\nthe property management business. Interests in five of the properties, for\ninitial consideration of $219 million, will be by way of prepaid 80-year\nleases with the right to acquire the free-hold interest at the end of the\nlease term. The purchase price will be satisfied by the assumption of $230\nmillion in existing mortgage financing, the issuance of approximately $41.4\nmillion in Calloway LP Units that are convertible into Calloway REIT Units at\na price per unit of $29.30, of which, Mr. Mitchell Goldhar will receive\napproximately $16.7 million, and the balance in cash and preferred debt. The\nconsideration paid with respect to the initial eleven properties totals $235\nmillion, including $10.2 million for future expansion and development lands.\n\n\nThe acquisitions comprise of the following properties:\n\n-------------------------------------------------------------------------\nProperty Prov. GLA Built GLA on Anchors\n Completion\n-------------------------------------------------------------------------\n\nClosed\n\nBrampton ON - 280,235 Loblaws(1)\n (Airport & Bovaird)\nFredericton (N) NB - 163,224 Wal-Mart(1)\nKirkland QC 207,216 207,216 Wal-Mart\nMagog QC - 256,110 Wal-Mart\nMilton (50%) ON 128,928 228,928 Wal-Mart(1),\n Canadian Tire(1)\nMississauga\n (Erin Mills)(2)(40%) ON 272,130 286,927 Wal-Mart,\n No Frills\nMississauga\n (Meadowvale)(3)(50%) ON 451,468 566,35...