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TORONTO, ON, Dec. 18, 2020 /CNW/ - Choice Properties Real Estate Investment Trust ("Choice Properties" or the "Trust") (TSX: CHP.UN) today completed an acquisition of a portfolio of six industrial properties (the "Portfolio") from Weston Foods (Canada) Inc. ("Weston Foods"). The aggregate purchase price of the Portfolio was $79.1 million, excluding transaction costs, which was satisfied in full through the issuance of 5,824,742 Class B LP Units of Choice Properties Limited Partnership, which are exchangeable into, and economically equivalent to, units of the Trust. The purchase price for the acquisition was supported by an independent third-party appraisal obtained by the Trust.
The Portfolio comprises 835,000 square feet of gross leasable area and is 100% leased to Weston Foods with an average lease term of 20 years. The properties are all located in key distribution markets across Canada, with approximately 65% of the Portfolio located in the Greater Toronto Area.
"We are pleased with the opportunity to expand our industrial portfolio by acquiring these high quality, well located assets," said, Rael Diamond, President and Chief Executive Officer of Choice Properties. "This acquisition is consistent with our ongoing commitment to improving our portfolio and reducing leverage by issuing equity. Further it demonstrates our ability to generate stable and growing net operating income through strategic acquisitions."
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 732 properties totaling 66.1 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 Third 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