BRAMPTON, Ont. -- Choice Properties Real Estate Investment Trust plans to acquire a portfolio of 10 commercial and retail properties across the country for a combined price of $150 million.
Nine of the properties are being bought from Choice's majority owner, Loblaw Companies Ltd. (TSX:L). Two are located in Nova Scotia, six in Ontario and one in British Columbia, Choice said in a release Thursday.
Meanwhile, a single-tenant retail asset in London, Ont., with about 5,000 square feet of gross leaseable space, is being purchased from an unnamed third-party vendor.
Together, the assets include four stand-alone supermarkets, three shopping centres, two single-tenant retail stores and one commercial complex, which includes a stand-alone supermarket and warehouse.
Choice says the deals will expand its portfolio by more than 900,000 square feet, raising the total 435 properties representing some 36.2 million square feet of retail, warehouse and office space.
The transaction with Loblaw is expected to be completed by Oct. 22 and funded by issuing about 10 million class B LP units valued at $9.96 apiece plus cash. The other deal is expected to close by the end of the year.
"Since the closing of our initial public offering (last summer), we have been focused on our objectives to generate stable and growing cash distributions, enhance the value of owned assets and grow our asset base," president and CEO John Morrison said in announcing the deals.
"This portfolio of properties builds on our ability to grow our portfolio in an accretive way and marks the first two site intensification projects in our development program."
