Choice Properties selling $426M retail portfolio

IMAGE: The SuperStore in Bridgewater, N.S., is one of 30 properties being sold by Choice Properties REIT. (Google Street View)

The SuperStore in Bridgewater, N.S., is one of 30 properties being sold by Choice Properties REIT. (Google Street View)

Choice Properties REIT (CHP.UN-T) says it has an agreement to sell a portfolio of 30 properties (27 retail sites and three distribution centres) across Canada for $426 million.

Choice does not identify the purchaser in its release Friday morning, but calls it a “third party”. The transaction is subject to customary closing conditions and is scheduled to close on Sept. 30.

The portfolio consists of 27 stand-alone retail properties and three distribution centres with an average lease term of approximately 12 years with Loblaw Companies Limited. Choice says the portfolio is being sold at slightly above its IFRS carrying value, and proceeds from the transaction will be used to repay debt.

“We are pleased to execute on this opportunity to recycle capital,” said Rael Diamond, president and chief executive officer, in the release. “Along with the recent issuance of equity, this transaction further strengthens our balance sheet by reducing leverage and providing additional capacity to fund our significant development program.”

Properties in secondary markets

All the properties included in the sale are in secondary or smaller markets, and the geographic range spans almost the entire breadth of the country, from Nova Scotia and New Brunswick through Alberta and north to Whitehorse and Yellowknife.

The purchaser also has the option to acquire two additional stand-alone retail properties for $29 million. If exercised, the additional properties are scheduled to close in Q4 2019.

BMO Capital Markets Real Estate Inc. is acting as an advisor on this transaction.

The properties in the portfolio are:

Property Address

City

Province

Asset Class

845 Ave. du Pont N

Alma

QC

Retail

25 Savoie Ave.

Atholville

NB

Retail

920 Victoria Ave.

Brandon

MB

Retail

21 Davison Dr.

Bridgewater

NS

Retail

726 Principale St.

Casselman

ON

Retail

75 Deep River Rd.

Deep River

ON

Retail

451 Main St.

Kentville

NS

Retail

300 Main St. E

Kingsville

ON

Retail

166 Conception Bay Hwy.

Manuels, C.B.S.

NL

Retail

282 Rue Ouellette

Marieville

QC

Retail

1792 Trans Canada Way SE

Medicine Hat

AB

Retail

277 King St.

Midland

ON

Retail

9292 County Rd. #93

Midland

ON

Retail

10 Deware Dr.

Moncton

NB

Industrial

775 Frenette Ave.

Moncton

NB

Industrial

1 Laurentian Ave.

North Bay

ON

Retail

519 Main St.

Powassan

ON

Retail

2101 Fleming Rd.

Regina

SK

Industrial

342 Rue Temiscouata

Rivière-du-Loup

QC

Retail

612 Main St.

Sauble Beach

ON

Retail

480 Boul. Sainte-Anne

Ste-Anne-Des-Plaines

QC

Retail

5101 – 47th Ave.

Stettler

AB

Retail

260 Rue Saint Cyrille

St-Raymond

QC

Retail

82 Lorne St.

Sudbury

ON

Retail

1200 Main St. E

Swan River

MB

Retail

4524 Feeney Ave.

Terrace

BC

Retail

100 Rue Des Oblats Nord

Ville-Marie

QC

Retail

115 Souris Ave. NW

Weyburn

SK

Retail

2270 2nd Ave.

Whitehorse

YT

Retail

250 Old Airport Rd.

Yellowknife

NT

Retail

About Choice Properties REIT

Choice Properties is the owner, manager and developer of a portfolio comprising 756 properties totalling 68 million square feet of gross leasable area.

Choice Properties portfolio is comprised of retail properties predominantly leased to necessity‐based tenants; industrial, office and residential assets concentrated in attractive markets; and offers a 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.

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