Choice Properties (the RE arm of Loblaws) to acquire CREIT for $6 Bil.

Big breaking news today came from Choice Properties yesterday that seems to indicate that they will acquire hoice Properties Real Estate Investment Trust (CHP.UN-T) for $6 Bil. and become Canada’s largest REIT. Here are the key takeaways from an article titles “Choice Properties to acquire CREIT in $6B transaction” by Don Wilcox of RENX:

  1. Choice properties (controlled largely by Loblaw Companies Limited (L-T), George Weston Limited (WN-T) and the Weston family) will become Canada’s largest REIT with a property value of $15 Bil.
    1. Their diversified portfolio will contain
      1. 752 properties
      2. 69 million square feet of gross leasable area
  2. CREIT will receive:
    1. approximately 58 per cent in Choice Properties units and 42 per cent in cash.
    2. Here is the new ownership structure of Choice Properties
      1. Loblaw/GWL=66%
      2. CREIT shareholders=27%
      3. other Choice shareholders=7%.
  3. Why did Choice offer to buy CREIT?
    1. To diversify in terms of tenant base, property type, and tenant mix
    2. More redevelopment opportunities by combining the portfolio of both companies
      1. e.g. 60 revelopment sites have been identified

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Hadi is Honours civil of engineering graduate with solid project management experience in the construction industry. Solutions-focused, results-oriented with strong business acumen and entrepreneurial spirit. Currently, he is working as an assistant site-superintendant with Darcon Inc. at one of Vaughan's biggest developments, Centro Square.

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