Canadian Real Estate Investment Trust Increases its Investment in
Carrefour de la Rive-Sud Shopping Centre
TORONTO, ONTARIO -- (Marketwire) -- 12/14/12 -- Canadian Real Estate
Investment Trust (CREIT) (TSX:REF.UN) announced that it has acquired
an additional 25% interest in Carrefour de la Rive-Sud Shopping
Centre (the Property) located in Boucherville, Quebec (part of the
Greater Montreal Area).
Prior to this transaction, CREIT owned a 50% interest in the
Property; therefore, this acquisition increases CREIT's ownership
interest to 75%.
The Property is a dominant unenclosed shopping centre located on
Montreal's South Shore off Highway 20 just west of Highway 30.
Inclusive of space directly owned by retail anchors, the shopping
centre is currently comprised of approximately 1.0 million square
feet of retail area.
Retailer owned shadow anchors include Ikea (which is currently
expanding its store), Costco and Rona, all of which are fully
integrated into the shopping centre.
The Property acquired is comprised of approximately 520,000 square
feet of leasable area on 53 acres of land (both at 100%). This space
is currently 98.3% leased with a weighted average remaining lease
term of approximately six years. Tenants include a strong roster of
national and regional retailers. CREIT has also acquired an
additional 25% interest in the future density (which represents
approximately 20,000 square feet of leasable area at 100%).
The purchase price of $41.8 million (prior to the mark-to-market
adjustment referred to below) was partially satisfied by the
assumption of $15.9 million of existing mortgage debt, carrying an
interest rate of 6.2% and a term to maturity of 4.0 years. A
mark-to-market adjustment (in favour of CREIT) was made on closing in
respect of the assumed debt. The balance of the purchase price was
funded with cash on hand and through CREIT's bank facility.
Adam Paul, Executive Vice President, Investments and Leasing of CREIT
said "We are pleased to increase our investment in this exceptional
retail asset. Notwithstanding a very competitive acquisitions
environment, we have now successfully added approximately $355
million of high quality income-producing real estate to our portfolio
in 2012. In addition, our development program continues to gain
significant traction and is progressing very well."
Carrefour de la Rive-Sud is a good example of the acquisition
pipeline that CREIT has created through strategic relationships with
existing partners, including North American Development Group,
CREIT's partner and the developer of the Property.
CREIT is a real estate investment trust focused on accumulating a
portfolio of high-quality real estate assets and delivering the
benefits of real estate ownership to Unitholders. The primary benefit
is a reliable and, over time, increasing cash distribution.
Cautionary Statements Regarding Forward-looking Statements
This news release contains forward-looking statements relating to our
operations and the environment in which we operate, which are based
on our expectations, estimates, forecasts and projections. These
statements are not guarantees of future performance and involve risks
and uncertainties that are difficult to control or predict.
Therefore, actual outcomes and results may differ materially from
those expressed in these forward-looking statements. Readers,
therefore, should not place undue reliance on any such
forward-looking statements. Further, a forward-looking statement
speaks only as of the date on which such statement is made. We
undertake no obligation to publicly update any such statement, to
reflect new information or the occurrence of future events or
circumstances, except as required by law.
Canadian Real Estate Investment Trust
Executive Vice President, Investments and Leasing
Canadian Real Estate Investment Trust
Vice President and CFO
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