Choice Properties to buy Canadian REIT for $3.1b
Choice Properties REIT will acquire Canadian Real Estate Investment Trust's assets and assume all of its liabilities, including long-term debt and all residual liabilities. The sales price was approximately C$3.93 billion ($3.1 billion).
Together, Choice Properties and CREIT will form Canada's largest REIT with an enterprise value of approximately C$16 billion ($12.79 billion). The resulting enterprise will have industry leading operating and development capabilities as well as an unparalleled diversified portfolio comprising 752 properties with 69 million square feet of GLA.
The Weston family controls Loblaw Cos., which is the majority unit holder of Choice Properties and the country’s largest grocer, as well as Shoppers Drug Mart, the largest drugstore retailer, through George Weston. The Weston family owns or controls more than 200 companies.
The Westons’ plan to redevelop some of the properties into ones that have a combination of retail, residential and office.
“We are excited to be creating Canada’s leading diversified REIT. Choice Properties’ expanded diversified real estate portfolio, anchored by Canada’s largest retailer, will provide unitholders of both Choice Properties and CREIT the opportunity to capitalize on the future growth and value creation opportunities of this strategic transaction,” said John Morrison, president and CEO of Choice Properties. “Relying on the depth of tenant relationships of both organizations, the combined real estate will provide tenants with best-in-class real estate solutions across an extensive national portfolio.”
