Loblaw sells 16 properties to REIT

Loblaw said Thursday that it had completed the sale of 16 of its properties to a majority owned real estate investment trust, Choice Properties.

The portfolio comprises over 1.3 million square feet across Canada. The total purchase price was approximately $211.9 million, of which approximately $112.2 million was paid to Loblaw through the issuance of Class B limited shares of Choice Properties, with the remainder in cash. The Class B units are exchangeable to trust units of the REIT.

Loblaw now holds an effective interest in the REIT of approximately 83%.