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Choice Properties Real Estate Investment Trust Announces $426 Million Portfolio Disposition

September 20, 2019

TORONTO, Sept. 20, 2019 /CNW/ - Choice Properties Real Estate Investment Trust ("Choice Properties" or the "Trust") (TSX: CHP.UN) announced today that it has entered into an agreement to sell a 30 property portfolio (the "Portfolio") for an aggregate sale price of approximately $426 million (the "Transaction") to a third party purchaser. The Transaction is subject to customary closing conditions and is scheduled to close on September 30, 2019.

Choice Properties Real Estate Investment Trust (CNW Group/Choice Properties Real Estate Investment Trust)

The unencumbered Portfolio consists of 27 stand-alone retail properties and 3 distribution centres with an average lease term of approximately twelve years with Loblaw Companies Limited. The Portfolio is being sold at slightly above its IFRS carrying value and the proceeds from the Transaction will be used to repay debt.

"We are pleased to execute on this opportunity to recycle capital," said Rael Diamond, President and Chief Executive Officer. "Along with the recent issuance of equity, this transaction further strengthens our balance sheet by reducing leverage and providing additional capacity to fund our significant development program."

The purchaser has the option to acquire two additional stand-alone retail properties for an aggregate sale price of approximately $29 million. If exercised, the additional properties are scheduled to close in Q4 2019.

BMO Capital Markets Real Estate Inc. is acting as an advisor on this Transaction.

The properties in the Portfolio are:

Property Address

City

Province

Asset Class

845 Ave. du Pont N

Alma

QC

Retail

25 Savoie Ave.

Atholville

NB

Retail

920 Victoria Ave.

Brandon

MB

Retail

21 Davison Dr.

Bridgewater

NS

Retail

726 Principale St.

Casselman

ON

Retail

75 Deep River Rd.

Deep River

ON

Retail

451 Main St.

Kentville

NS

Retail

300 Main St. E

Kingsville

ON

Retail

166 Conception Bay Hwy.

Manuels, C.B.S.

NL

Retail

282 Rue Ouellette

Marieville

QC

Retail

1792 Trans Canada Way SE

Medicine Hat

AB

Retail

277 King St.

Midland

ON

Retail

9292 County Rd. #93

Midland

ON

Retail

10 Deware Dr.

Moncton

NB

Industrial

775 Frenette Ave.

Moncton

NB

Industrial

1 Laurentian Ave.

North Bay

ON

Retail

519 Main St.

Powassan

ON

Retail

2101 Fleming Rd.

Regina

SK

Industrial

342 Rue Temiscouata

Rivière-du-Loup

QC

Retail

612 Main St.

Sauble Beach

ON

Retail

480 Boul. Sainte-Anne

Ste-Anne-Des-Plaines

QC

Retail

5101 - 47th Ave.

Stettler

AB

Retail

260 Rue Saint Cyrille

St-Raymond

QC

Retail

82 Lorne St.

Sudbury

ON

Retail

1200 Main St. E

Swan River

MB

Retail

4524 Feeney Ave.

Terrace

BC

Retail

100 Rue Des Oblats Nord

Ville-Marie

QC

Retail

115 Souris Ave. NW

Weyburn

SK

Retail

2270 2nd Ave.

Whitehorse

YT

Retail

250 Old Airport Rd.

Yellowknife

NT

Retail

 

About Choice Properties Real Estate Investment Trust
Choice Properties, Canada's preeminent diversified real estate investment trust, is the owner, manager and developer of a high-quality portfolio comprising 756 properties totaling 68.0 million square feet of gross leasable area. Choice Properties owns a portfolio comprised of retail properties predominantly leased to necessity‐based tenants; industrial, office and residential assets concentrated in attractive markets; and offers an impressive and substantial development pipeline. Choice Properties' strategic alliance with its principal tenant, Loblaw Companies Limited, the country's leading retailer, is a key competitive advantage providing long-term growth opportunities. For more information, visit Choice Properties' website at www.choicereit.ca and Choice Properties' issuer profile at www.sedar.com.

Forward-Looking Statements
This press release may contain forward-looking information within the meaning of applicable securities legislation, which reflects Choice Properties' current expectations regarding future events. Forward-looking information is based on a number of assumptions and is subject to a number of risks and uncertainties, many of which are beyond Choice Properties' control that could cause actual results and events to differ materially from those that are disclosed in or implied by such forward-looking information. Such risks and uncertainties include, but are not limited to, the factors discussed in Choice Properties' current Annual Information Form and Second Quarter 2019 Report to Unitholders. Choice Properties does not undertake any obligation to update such forward-looking information, whether as a result of new information, future events or otherwise, except as expressly required by applicable law. All forward-looking statements contained in this press release are made as of the date hereof and are qualified by these cautionary statements.

SOURCE Choice Properties Real Estate Investment Trust