OREANDA-NEWS. Choice Properties Real Estate Investment Trust ("Choice Properties" or the "Trust") (TSX: CHP.UN) today completed the acquisition of a portfolio of 10 retail properties, including four Shoppers Drug Mart ("Shoppers") sites, and one warehouse property from certain subsidiaries of Loblaw Companies Limited (collectively, "Loblaw"), for an aggregate purchase price of approximately $117.3 million, excluding transaction costs. The acquisition was fully-funded with cash.

Highlights of Acquired Portfolio

  • Expands portfolio by approximately 681,000 square feet ("sq. ft.") of gross leasable area ("GLA"), with an occupancy rate of approximately 96.5%;
  • Immediately accretive acquisition with an implied capitalization rate of approximately 6.00% (6.40%, excluding the warehouse property); and
  • Incremental value-add potential with a potential to develop up to 7,000 sq. ft. of incremental GLA across two Ontario properties within the next two years.

With the acquisition of these 10 properties, Choice Properties' portfolio consists of 529 properties comprising 510 retail properties, 12 warehouse properties, one office complex, one industrial property and five parcels of land, totaling approximately 42.3 million sq. ft. of GLA across Canada. Upon completion of this acquisition, the total number of Shoppers Drug Mart sites in Choice Properties' portfolio increased to 10.

Portfolio Summary

The acquired portfolio comprises approximately 681,000 sq. ft. of GLA.  As principal tenant, Loblaw represents over 96% and 99% of total GLA and stabilized NOI, respectively, of this portfolio. All Loblaw leases have an initial lease term of 15 years, with multiple renewal options ranging from four to 17 five-year renewal options and include rent escalations of approximately 7.7% every five years. 

Property Summary

           

Address

Banner

Year Built /

Loblaw GLA

Ancillary GLA

% Occupied

Last Renovated

69 King St., Harrow, ON

Shoppers Drug Mart

1979 / 2015

10,671

-

100%

971 Carrick St., Thunder Bay, ON

Real Canadian Superstore

1992 / 2014

140,181

-

100%

18765 Fraser Hwy., Surrey, BC

Your Independent Grocer

2005 / 2015

41,029

-

100%

1460 East Hastings St., Vancouver, BC

no frills

2014 / --

21,060

-

100%

8121 – 118 Avenue NW, Edmonton, AB

Shoppers Drug Mart

2013 / --

10,482

-

100%

100 Westpark Blvd., Fort Saskatchewan, SK 

Shoppers Drug Mart

2014 / --

17,237

-

100%

600 Notre Dame Ave., Winnipeg, MB

no frills

1995 / 2015

25,346

-

100%

3 Philip Place, Kincardine, ON

no frills

1955 / 2014

25,738

20,483

56%

9970 Main St., Lake Country, BC

Shoppers Drug Mart

2015 / --

10,192

3,432

75%

18800 Lougheed Hwy., Pitt Meadows, BC

Loblaw Warehouse

2003 / 2009

355,316

-

100%
     

657,252

23,915

96.50%

About Choice Properties Real Estate Investment Trust
Choice Properties Real Estate Investment Trust is an owner, manager and developer of well-located commercial real estate across Canada. Choice Properties' portfolio spans approximately 42.3 million square feet of gross leasable area and consists of 529 properties primarily focused on supermarket- and drug store-anchored shopping centres, stand-alone supermarkets and stand-alone drug stores. Choice Properties' strategy is to create value by enhancing and optimizing its portfolio, through accretive acquisitions, strategic developments and active property management.  Choice Properties' principal tenant and largest unitholder is Loblaw Companies Limited, Canada's largest retailer. Choice Properties' strong alliance with Loblaw Companies Limited positions it well for future growth.