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TORONTO, July 28, 2020 /CNW/ – Choice Properties Real Estate Investment Trust (“Choice Properties” or the “Trust“) (TSX: CHP.UN) announced today that it has entered into an agreement to acquire two real estate assets (the “Properties“) from Wittington Properties Limited (“Wittington“) for an aggregate purchase price of approximately $206 million, excluding transaction costs, which will be satisfied in full by the issuance of 16.5 million trust units of Choice Properties.
The Properties include: (i) the remaining 60% interest in West Block, a mixed-use site that combines retail shops anchored by a Loblaws grocery store and office space located on the northeast corner of Lake Shore Boulevard and Bathurst Street in Toronto, and (ii) the Weston Centre, a multi-tenant office and retail site, including a Loblaws grocery store located at the intersection of Yonge Street and St. Clair Avenue in Toronto. The Properties comprise approximately 585,000 square feet of gross leasable area.
As previously announced, Choice Properties entered into a joint venture partnership with Wittington to revitalize and restore the original Loblaw Groceterias building to create West Block. Upon the completion of this acquisition, Choice Properties will hold a 100% ownership interest in West Block. In addition, the Weston Centre will continue to serve as the head office of Choice Properties and its parent company, George Weston Limited.
“We are pleased to acquire these high-quality, well-located properties in Toronto,” said, Rael Diamond, President and Chief Executive Officer of Choice Properties. “George Weston Limited and affiliated companies account for approximately 55% of the net operating income with a weighted average lease term of approximately 9 years, which demonstrates Choice Properties’ ability to generate stable and growing net operating income through strategic acquisitions.”
The purchase price for the acquisition was established with reference to independent financial advice from RBC Capital Markets on behalf of Choice Properties and CIBC Capital Markets on behalf of Wittington. The acquisition is subject to customary closing conditions, including approval from the Toronto Stock Exchange, and is expected to be completed on or about July 31, 2020.
About Choice Properties Real Estate Investment Trust Choice Properties, Canada’s preeminent diversified real estate investment trust, is the owner, manager and developer of a high-quality portfolio comprising 724 properties totaling 65.6 million square feet of gross leasable area. Choice Properties owns a portfolio comprised of retail properties predominantly leased to necessity-based tenants; industrial, office and residential assets concentrated in attractive markets; and offers an impressive and substantial development pipeline. Choice Properties’ strategic alliance with its principal tenant, Loblaw Companies Limited, the country’s leading retailer, is a key competitive advantage providing long-term growth opportunities. For more information, visit Choice Properties’ website at www.choicereit.ca and Choice Properties’ issuer profile at www.sedar.com.
Forward-Looking Statements This press release may contain forward-looking information within the meaning of applicable securities legislation, which reflects Choice Properties’ current expectations regarding future events. Forward-looking information is based on a number of assumptions and is subject to a number of risks and uncertainties, many of which are beyond Choice Properties’ control that could cause actual results and events to differ materially from those that are disclosed in or implied by such forward-looking information. Such risks and uncertainties include, but are not limited to, the factors discussed in Choice Properties’ current Annual Information Form and 2020 Second Quarter Report to Unitholders. Choice Properties does not undertake any obligation to update such forward-looking information, whether as a result of new information, future events or otherwise, except as expressly required by applicable law. All forward-looking statements contained in this press release are made as of the date hereof and are qualified by these cautionary statements.
SOURCE Choice Properties Real Estate Investment Trust
For further information: Mario Barrafato, Chief Financial Officer, Choice Properties Real Estate Investment Trust, t (416) 628-7872, e [email protected]
TORONTO – One expert predicts Ottawa‘s changes to mortgage rules will help spur demand among potential homebuyers but says policies aimed at driving new supply are needed to address the “core issues” facing the market.
The federal government’s changes, set to come into force mid-December, include a higher price cap for insured mortgages to allow more people to qualify for a mortgage with less than a 20 per cent down payment.
The government will also expand its 30-year mortgage amortization to include first-time homebuyers buying any type of home, as well as anybody buying a newly built home.
CIBC Capital Markets deputy chief economist Benjamin Tal calls it a “significant” move likely to accelerate the recovery of the housing market, a process already underway as interest rates have begun to fall.
However, he says in a note that policymakers should aim to “prevent that from becoming too much of a good thing” through policies geared toward the supply side.
Tal says the main issue is the lack of supply available to respond to Canada’s rapidly increasing population, particularly in major cities.
This report by The Canadian Press was first published Sept. 17,2024.
OTTAWA – The Canadian Real Estate Association says the number of homes sold in August fell compared with a year ago as the market remained largely stuck in a holding pattern despite borrowing costs beginning to come down.
The association says the number of homes sold in August fell 2.1 per cent compared with the same month last year.
On a seasonally adjusted month-over-month basis, national home sales edged up 1.3 per cent from July.
CREA senior economist Shaun Cathcart says that with forecasts of lower interest rates throughout the rest of this year and into 2025, “it makes sense that prospective buyers might continue to hold off for improved affordability, especially since prices are still well behaved in most of the country.”
The national average sale price for August amounted to $649,100, a 0.1 per cent increase compared with a year earlier.
The number of newly listed properties was up 1.1 per cent month-over-month.
This report by The Canadian Press was first published Sept. 16, 2024.
MONTREAL – Two Quebec real estate brokers are facing fines and years-long suspensions for submitting bogus offers on homes to drive up prices during the COVID-19 pandemic.
Christine Girouard has been suspended for 14 years and her business partner, Jonathan Dauphinais-Fortin, has been suspended for nine years after Quebec’s authority of real estate brokerage found they used fake bids to get buyers to raise their offers.
Girouard is a well-known broker who previously starred on a Quebec reality show that follows top real estate agents in the province.
She is facing a fine of $50,000, while Dauphinais-Fortin has been fined $10,000.
The two brokers were suspended in May 2023 after La Presse published an article about their practices.
One buyer ended up paying $40,000 more than his initial offer in 2022 after Girouard and Dauphinais-Fortin concocted a second bid on the house he wanted to buy.
This report by The Canadian Press was first published Sept. 11, 2024.
