Choice Properties Real Estate Investment Trust (REIT) has signed an agreement to sell a portfolio of 30 properties across Canada for $426 million to a third party purchaser.
The transaction is subject to customary closing conditions and is scheduled to close on September 30, 2019.
The portfolio consists of 27 stand-alone retail properties and 3 distribution centres with an average lease term of approximately twelve years with Loblaw Companies Limited.
“We are pleased to execute on this opportunity to recycle capital. 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,” said Rael Diamond, President and Chief Executive Officer at Choice Properties REIT.
The purchaser has the option to acquire two additional stand-alone retail properties for an aggregate sale price of approximately $29 million. If exercised, the additional properties are scheduled to close in Q4 2019.
The buyer was not identified. BMO Capital Markets Real Estate Inc. is acting as an advisor on this transaction.