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BRAMPTON, ON, July 15, 2013 /CNW/ - Choice Properties Real Estate Investment Trust ("Choice Properties" or the "REIT") (TSX: CHP.UN) announced today that pursuant to the underwriting agreement dated June 26, 2013 among the REIT, Loblaw Companies Limited ("Loblaw") and a syndicate of underwriters co-led by CIBC, RBC Capital Markets and TD Securities Inc., the underwriters have exercised in full their option to purchase 6,000,000 additional trust units of the REIT at a price of $10.00 per trust unit for aggregate consideration of $60 million. The closing of the over-allotment option is expected to occur on July 17, 2013.
The closing of the over-allotment option will increase the total gross proceeds of the initial public offering to $460 million. The net proceeds of the over-allotment option will be used by Choice Properties for the repayment of debt.
Upon closing of the over-allotment option, Loblaw will hold an approximate 81.7% effective interest in Choice Properties on a fully diluted basis through ownership of 21,500,000 trust units and all of the Class B limited partnership units of Choice Properties Limited Partnership (the "Partnership"), which are economically equivalent to and exchangeable for trust units. In addition, Loblaw will continue to hold all of the outstanding Class C limited partnership units of the Partnership. Upon closing of the over-allotment option, George Weston Limited (Loblaw's majority shareholder), will hold an approximate 5.6% effective interest in Choice Properties on a fully diluted basis.
These securities have not been, nor will they be, registered under the U.S. Securities Act of 1933, as amended, and may not be offered, sold or delivered, directly or indirectly, in the United States or to, or for the account or benefit of, ''U.S. persons'' (as defined in Regulation S under the United States Securities Act of 1933, as amended) except pursuant to certain exemptions. This press release does not constitute an offer to sell or a solicitation of an offer to buy any of these securities in the United States or to, or for the account or benefit of, U.S. persons.
About Choice Properties Real Estate Investment Trust
Choice Properties Real Estate Investment Trust is owner, manager and developer of commercial real estate well located across Canada. Choice Properties' initial portfolio spans approximately 35.3 million square feet of gross leasable area and consists of 425 properties primarily focused on supermarket-anchored shopping centres, stand-alone supermarkets and other retail properties. Choice Properties' strategy is to create value by enhancing and optimizing its property portfolio, which was built over thirty years by Loblaw, the REIT's principal tenant, largest Unitholder and lender. Choice Properties' strong alliance with Loblaw positions it well for future growth. 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 under "Risk Factors" in the final prospectus of Choice Properties dated June 26, 2013 with respect to the trust units. 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.
SOURCE: Choice Properties Real Estate Investment Trust