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TORONTO, July 28, 2020 /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 acquire two real estate assets (the "Properties") from Wittington Properties Limited ("Wittington") for an aggregate purchase price of approximately $206 million, excluding transaction costs, which will be satisfied in full by the issuance of 16.5 million trust units of Choice Properties.
The Properties include: (i) the remaining 60% interest in West Block, a mixed-use site that combines retail shops anchored by a Loblaws grocery store and office space located on the northeast corner of Lake Shore Boulevard and Bathurst Street in Toronto, and (ii) the Weston Centre, a multi-tenant office and retail site, including a Loblaws grocery store located at the intersection of Yonge Street and St. Clair Avenue in Toronto. The Properties comprise approximately 585,000 square feet of gross leasable area.
As previously announced, Choice Properties entered into a joint venture partnership with Wittington to revitalize and restore the original Loblaw Groceterias building to create West Block. Upon the completion of this acquisition, Choice Properties will hold a 100% ownership interest in West Block. In addition, the Weston Centre will continue to serve as the head office of Choice Properties and its parent company, George Weston Limited.
"We are pleased to acquire these high-quality, well-located properties in Toronto," said, Rael Diamond, President and Chief Executive Officer of Choice Properties. "George Weston Limited and affiliated companies account for approximately 55% of the net operating income with a weighted average lease term of approximately 9 years, which demonstrates Choice Properties' ability to generate stable and growing net operating income through strategic acquisitions."
The purchase price for the acquisition was established with reference to independent financial advice from RBC Capital Markets on behalf of Choice Properties and CIBC Capital Markets on behalf of Wittington. The acquisition is subject to customary closing conditions, including approval from the Toronto Stock Exchange, and is expected to be completed on or about July 31, 2020.
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 724 properties totaling 65.6 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.
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 2020 Second Quarter 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