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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.
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 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