Loblaw completes sale of portfolio of 20 commercial properties to Choice Properties REIT for roughly C$200M; portfolio comprises more than 1.2 million sq. ft. across Canada, 14 Loblaw-bannered stand-alone supermarkets, six Loblaw-anchored sites
May 8, 2014
– Loblaw Companies Limited (TSX: L, "Loblaw") completed the sale of a portfolio of 20 commercial properties to Choice Properties Real Estate Investment Trust (the "REIT") on May 6, 2014 (the "Transaction"). The portfolio comprises over 1.2 million square feet across Canada and is made up of 14 Loblaw bannered stand-alone supermarkets and six Loblaw-anchored retail sites with other ancillary tenants. The total purchase price was approximately $200 million, of which approximately $119.6 million was paid to Loblaw through the issuance of Class B limited partnership units (the "Class B Units") of Choice Properties Limited Partnership, with the remainder in cash. The Class B Units are exchangeable on a one-for-one basis for, and are economically equivalent to, trust units of the REIT (the "REIT Units").
As a result of the Transaction, Loblaw has been issued 11,259,208 Class B Units representing approximately 3 per cent of the aggregate issued and outstanding Class B Units and REIT Units as of May 6, 2014 following the closing of the Transaction, on a fully exchanged basis. Loblaw now holds an effective interest in the REIT of approximately 82.6 per cent.
About Loblaw Companies Limited
Loblaw Companies Limited is Canada's food and pharmacy leader, the nation's largest retailer, and the majority unitholder of Choice Properties Real Estate Investment Trust. Loblaw provides Canadians with grocery, pharmacy, health and beauty, apparel, general merchandise, banking, and wireless mobile products and services. With more than 2,300 corporate, franchised and Associate-owned locations, Loblaw, its franchisees, and Associate-owners employ approximately 192,000 full- and part-time employees, making it one of Canada's largest private sector employers.
Loblaw's purpose - Live Life Well - puts first the needs and well-being of Canadians who make one billion transactions annually in the companies' stores. Loblaw is positioned to meet and exceed those needs in many ways: convenient locations; more than 1,050 grocery stores that span the value spectrum from discount to specialty; full-service pharmacies at more than 1,250 Shoppers Drug Mart and Pharmaprix locations and more than 500 Loblaw locations; no-fee banking with PC Financial; affordable Joe Fresh fashion and family apparel; and three of Canada's top consumer brands in Life Brand®, noname® and President's Choice®. Through the PC Plus™ and Shoppers Optimum® loyalty programs, more than one in every three Canadians are rewarded for shopping with the companies.
SOURCE Loblaw Companies Limited
For more information, visit Loblaw's website at www.loblaw.ca and Loblaw's issuer profile at www.sedar.com.