Vancouver-based Lotus Capital Corp. has acquired a four-property Eastern Ontario grocery-anchored portfolio of shopping centres from Choice Properties REIT.

Lotus said the 292,000-square-foot portfolio includes grocery and needs-based shopping centres in the communities of Kingston, Cornwall, Rockland and Hawkesbury.

“This transaction reflects our disciplined approach to capital deployment and the strength of the relationships that enable us to execute with confidence,” Shenoor Jadavji, founder and CEO of Lotus Capital, said in the announcement. “It is a strong strategic fit within our broader retail thesis and supports our continued expansion into well-established, necessity-based markets.”

Financial details of the transaction have not been disclosed.

Dan Dibadj, vice-president of acquisitions at Lotus Capital, spoke of the significance of the acquisition within the firm’s expanding retail platform. 

“These assets complement our growing retail platform and further strengthen our national portfolio,” he said. “We remain active in pursuing additional grocery-anchored opportunities that offer durable income and long-term growth potential, and we’re proud to partner with exceptional organizations to continue advancing this mandate.”

The properties are:

Brookdale Centre in Cornwall is the largest of the properties, and in addition to the Food Basics grocery store is also anchored by Dollarama, Scotiabank and Planet Fitness. A brochure released by Avison Young indicates the property is 90 per cent leased. Other retailers include GameStop, Guac Mexi Grill, Kelseys, Penningtons, Play It Again Sports, Reitmans, Stacked Pancake House, The Beer Store, Tim Hortons and Tootsies Shoe Market amongst others.

TD Cornerstone Commercial Realty Inc. and Avison Young were involved in brokering the transaction, and Stikeman Elliott acted as legal advisor to Lotus Capital.

Lotus Capital seeks to grow retail portfolio

The acquisitions support Lotus’s strategy to expand its portfolio of “high-quality, income-producing properties across Canada.” The company holds a portfolio of industrial, commercial, multifamily and retail properties as well as development sites in British Columbia, Alberta, Ontario and in the U.S., according to its website.

Over its 30-year history, the firm has invested over $2 billion. Since 2010, $160 million of raised equity has been deployed into its North American acquisitions which represent over five million leasable square feet.

In 2014, Lotus formed a strategic relationship with PROREIT to leverage Lotus Capital’s real estate investment expertise and national breadth to advance PROREIT’s growth strategies. Since then, PROREIT’s market cap has quintupled.

Toronto-based Choice Properties REIT is Canada's largest retail investment trust, with stakes in a nationwide portfolio of retail, industrial and residential/mixed-use assets. It owns, operates and/or manages over 700 properties comprising approximately 67 million square feet of space, and valued at