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Loblaw to Sell 425 Properties to New REIT
BRAMPTON, Ontario — Loblaw Cos. here will contribute 425 properties including 415 stores, one office complex and nine warehouses to a new real estate investment trust.
May 28, 2013
2 Min Read
BRAMPTON, Ontario — Loblaw Cos. here said it will contribute 425 properties including 415 stores, one office complex and nine warehouses to a new real estate investment trust.
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The REIT, to be known as Choice Properties, will optimize the value of Loblaw’s real estate portfolio, lower the cost of capital to develop new properties and increase the speed with which Loblaw can develop new sites, the company said in a release.
The properties — representing around 75% of Loblaw’s real estate holdings — total 35.3 million square feet with a value of more than $7 billion (U.S.), Loblaw said in a preliminary prospectus filed with Canadian authorities. Loblaw said its parent company, George Weston Ltd., would acquire around $200 million in shares in the new REIT when it goes public this summer.
Read more: Loblaw to Spin Off Real Estate
John Morrison, former chief executive of Primaris Retail REIT, will be Choice Properties’ CEO, Loblaw said. Former Calloway REIT chief financial officer Bart Munn will be CFO, and Jane Marshall, a 20-year veteran of Loblaw's real estate department, will serve as chief operating officer.
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