Choice Properties' principal tenant and largest unitholder is Loblaw, Canada's largest retailer. Choice Properties is a Real Estate Investment Trust that owns, manages and develops retail and commercial real estate across Canada. The resulting enterprise will have an Starlight Group Property Holdings Inc.3280 Bloor Street WestSuite 1400Centre TowerToronto, ONM8X 2X3(416) 234-8444, KingSett Real Estate Growth LP No. CAPREIT is one of Canada's largest real estate investment trusts. The resulting enterprise will have industry leading operating and development capabilities as well as an unparalleled diversified portfolio comprising 752 properties with 69 million square feet of GLA. Two Canadian REITs complete merger into Nexus REIT Earlier this week, Edgefront Real Estate Investment (TSXV: ED.UN) and Nobel Real Estate Investment Trust (TSXV: NEL.UN) announced the completion of its deal to enter into a diversified merger. Under the terms of the waiver, Starlight and KSLP7 and their respective affiliates are restricted from acquiring Northview Units which, together with Northview Units already owned, would exceed 19.99% of the outstanding Northview Units. Since February 19, 2020, 297,239 Northview Units were acquired by Starlight Group pursuant to Northview’s Distribution Reinvestment Program. The Class C LP units are convertible by their terms into Class B LP units commencing in 2027 and the conversion of the Class C LP units on closing of the transaction will be effected in accordance with those terms. The proposed transaction could be modified, restructured or terminated. Additional income through monthly distributions of roughly 0.41% per month. H&R REIT has ownership interests in a North American portfolio of high quality office, retail, industrial and residential properties comprising over 40 million square feet. Choice Properties and CREIT can give no assurance that such estimates, beliefs and assumptions will prove to be correct. Choice Properties calculates NOI as rental revenue, excluding straight-line rent, from investment properties less property operating costs. In the combined REIT, John Morrison will become the Vice Chairman of the Board of Trustees and Stephen Johnson will be the President and CEO.". Tweet . Copyright Â© 2020 CNW Group Ltd. All Rights Reserved. A CisionÂ company.Â, HVAC (Heating, Ventilation and Air-Conditioning), Machine Tools, Metalworking and Metallurgy, Aboriginal, First Nations & Native American, Choice Properties Real Estate Investment Trust. ", Stephen Johnson, CEO of CREIT, said "This transformational combination creates immediate value for CREIT and provides tremendous opportunity for Choice Properties to capitalize on Canada's leading development pipeline and create long term value. On February 14, 2017, Nobel Real Estate Investment Trust (“Nobel”) and Edgefront Real Estate Investment Trust (“Edgefront”) jointly announced their merger to create a $300 million diversified REIT. The primary benefit is a reliable and, over time, increasing monthly cash distribution. An investor presentation will be made available on the Choice Properties and CREIT respective websites immediately prior to the call (please visit: www.choicereit.ca or www.creit.ca). The proforma entity is expected to have leverage in the range of 45-46% debt to total assets, a debt-to-EBITDA ratio of approximately 8 times and a $11.3 billion pool of unencumbered assets. Numerous risks and uncertainties could cause the combined entity's actual results to differ materially from the estimates, beliefs and assumptions expressed or implied in the forward-looking statements, including, but not limited to: failure to realize anticipated results and strategic benefits; general economic conditions, including changes in interest rates and the rate of inflation; failure of the combined entity to manage growth effectively in accordance with its growth strategy or acquire assets on an accretive basis; changes in timing to obtain municipal approvals, development costs, and tenant leasing and occupancy of properties under development, redevelopment or intensification; changes in competitiveness in the real estate market or the unavailability of desirable commercial real estate assets; the ability to maintain occupancy and to timely lease or re-lease space at current or anticipated rents; tenant bankruptcies, tenant defaults, joint venture and/or co-ownership partner defaults; changes in operating costs and capital expenditures; lack of liquidity of real property and the availability of financing; the inability to make distributions or other payments or advances; the inability of Choice Properties to maintain and leverage its relationship with Loblaw, including in respect of (i) Loblaw's retained interest in Choice Properties, (ii) the services to be provided to Choice Properties (whether directly or indirectly) by Loblaw, (iii) expected transactions to be entered into between Loblaw and Choice Properties (including Choice Properties' acquisition of certain properties held by Loblaw) and (iv) the strategic alliance agreement between Choice Properties and Loblaw dated July 5, 2013; changesÂ inÂ Loblaw's business,Â activitiesÂ orÂ circumstancesÂ whichÂ mayÂ impactÂ Choice Properties,Â including Loblaw's inability to make rent payments or perform its obligations under its leases; and changes in laws or regulatory regimes which may affect the combined entity, including changes in their tax treatment and distributions to unitholders, or the inability of the combined entity to continue to qualify as a "mutual fund trust" and as a "real estate investment trust", as such terms are defined in the Income Tax Act (Canada). The total consideration will consist of approximately 58% in Choice Properties units and 42% in cash. CREIT's Board of Trustees has received an opinion from its financial advisor, RBC Capital Markets, that as of the date thereof and subject to the assumptions, limitations and qualifications set forth therein, the consideration to be received by unitholders of CREIT pursuant to the transaction is fair, from a financial point of view, to unitholders of CREIT. John Morrison, President and CEO of Choice Properties, commented, "We are excited to be creating Canada's leading diversified REIT. Under applicable TSX rules, the transaction also requires the approval of Choice Properties' unitholders by majority vote, as the number of Choice Properties units to be issued in the transaction exceeds 25% of the total number of outstanding Choice Properties units. This will increase liquidity for the proforma Choice Properties units, which is expected to make them eligible for inclusion in relevant indices. Choice Properties and CREIT Complete Transaction to Create Canada's Preeminent Diversified REIT. Forward-looking statements reflect current estimates, beliefs and assumptions, which are based on Choice Properties' and CREIT's perception of historical trends, current conditions and expected future developments, as well as other factors management believes are appropriate in the circumstances. 740 King Street WestSuite 3700Toronto, ONM5H 3Y2(416) 687-6700. CREIT unitholders resident in Canada who receive cash generally will receive capital gains treatment on the redemption of their CREIT units. April 2017. Montréal. between the Trustees of Canadian Apartment Properties Real Estate Investment Trust, a real estate investment trust created under the laws of Ontario (the “Trust”) and Computershare Investor Services Inc., a company incorporated under the laws of Canada (the “Rights Agent”, which term shall include any successor Rights "This transformational acquisition leads to the creation of a real estate investment trust with resilient characteristics and adds value creation opportunities to Choice Properties' existing strong portfolio of retail assets," said Galen G. Weston, Chairman and CEO of Loblaw and GWL. A recent spate of mergers in U.S. real estate investment trusts has some investors giving the underperforming sector another look. The consolidated development pipeline presents meaningful value creation opportunities. This press release uses the following non-GAAP measures: NOI (Net Operating Income). As previously reported on the System for Electronic Disclosure by Insiders (SEDI), 719,500 Northview Units were acquired on the Toronto Stock Exchange between September 11 and 16, 2020 for aggregate cash consideration of $24,453,418.26, at prices between $33.67 and $33.99 per Northview Unit. NOI is a key performance indicator, as it evaluates the results of the portfolio and represents a measure over which management has control. 7 (“KSLP7”) announced today that Starlight Group and KSLP7 have acquired 1,016,739 trust units (the “Northview Units”) of Northview Apartment Real Estate Investment Trust (“Northview”) (the “Unit Acquisitions”). Choice Properties and CREIT anticipate that the transaction will be completed in the second quarter of 2018. There can be no assurance that the proposed transaction will occur or that the anticipated strategic benefits will be realized. CREIT is a real estate investment trust focused on accumulating and aggressively managing a portfolio of high-quality real estate assets and delivering the benefits of real estate ownership to unitholders. Copies of the arrangement agreement, management proxy circular and information statement will be available on SEDAR at www.sedar.com. Northview’s head office is located at 200, 6131- 6th Street SE, Calgary, Alberta T2H 1L9. Choice Properties was spun out by Loblaw Cos. Ltd. in 2013 and the grocery chain is its biggest tenant today. You want to make sure when a REIT issues units to make acquisitions (which is common in the sector because REITs pay out so much of their income) that the deal is accretive to shareholders. The total top or bottom line isn’t nearly as important as per unit metrics. The transaction financing has been structured with the intent of maintaining Choice Properties' current "BBB" credit rating. Choice Properties has also arranged a new $1.5 billion committed revolving credit facility, that will replace its and CREIT's existing credit facilities ensuring that Choice Properties will have maximum flexibility to support ongoing growth prospects including acquisitions and development. The combined entity will continue to maintain a stable and prudent capital structure, prioritizing risk management, liquidity and financial flexibility. Industry. To facilitate Choice Properties' financing for the transaction, Loblaw has agreed to convert all of its outstanding Class C LP units of Choice Properties Limited Partnership with a face value of $925 million ("Class C LP units") into Class B LP units of Choice Properties Limited Partnership ("Class B LP units") on closing. This combined entity will be Canada's preeminent diversified REIT. The combined REIT is in an enviable position with more than 60 sites prime for creating exciting residential-focused mixed-use communities, many of which are in close proximity to public transportation where people want to live, work, play and shop. REITs. Next, the best Canadian real estate investment trusts are those that are growing. Choice Properties and CREIT will host an investor conference call and webcast on February 15, 2018 at 8am EDT, (647) 427-7450 or (888) 231-8191. More information regarding these non-GAAP measures and a reconciliation of each to the nearest IFRS financial measure is available in Choice Properties' most recent management's discussion and analysis filed on SEDAR (www.sedar.com). Together, Choice Properties and CREIT will form Canada's largest REIT with an enterprise value of approximately $16B. To access the conference call via webcast, a link is available at www.choicereit.ca in the "Events and Webcast" section under "News and Events". The REIT’s properties are well located across Canada majorly in the largest markets. NOI is a supplemental measure of operating performance widely used in the real estate industry. Recent Canada REIT Merger & Acquisition Activity. Other risks and uncertainties not presently known to Choice Properties and CREIT or that Choice Properties and CREIT presently believe are not material could also cause actual results or events to differ materially from those expressed in its forward-looking statements. In addition to unitholder and court approvals, the transaction is subject to compliance with the Competition Act and certain other closing conditions customary in transactions of this nature. Acquisitions Partnership, DD Naples Partnership, Drimmer Holdings Ltd., Green-Starlight LP, MS Naples Partnership, Mustang DDAP Partnership, Mustang-Master LP, PD Kanco LP, Red-Starlight LP, Yellow-Starlight LP, DF Naples Partnership, DF Acquisitions Ltd. and LD Naples Partnership (each of which has a head office at 3280 Bloor Street West, Suite 1400, Centre Tower, Toronto, ON M8X 2X3) (collectively, “Starlight”) and KSLP7 (which has a head office at 40 King Street West, Suite 3700, Toronto, ON M5H 3Y2) increased their aggregate beneficial ownership of Northview Units to 10,428,696 Northview Units or 15.42%% of the total outstanding Northview Units (on a non-diluted basis). Starlight Group and KSLP7 effected the Unit Acquisitions for investment purposes and to reduce the cost of the acquisition of Northview. The money is held in a trust until a merger or acquisition is identified. Investment Canada Act. Looks simple so I am confused. Further information regarding the transaction will be included in the management proxy circular expected to be mailed to CREIT unitholders in March 2018. OUE real-estate investment trust (Reit) merger follows Viva-ESR; hope is to create better liquidity in stocks. For further information and to obtain a copy of the early warning report to be filed under applicable Canadian securities laws in connection with the foregoing matters, please see Northview’s profile on SEDAR at www.sedar.com. The term loan is structured in tranches maturing in 3, 4 and 5 years. Fiona Lam firstname.lastname@example.org @FionaLamBT. Choice Properties will consider hedging the term loan to manage floating interest rate exposure. Together, the combined REIT is uniquely positioned to deliver results for unitholders as the owner, manager and developer of a high quality portfolio of diversified assets.". This expanded pipeline includes potential to capitalize on an established retail development and intensification program and to leverage joint venture partnerships to access attractive sites to fuel additional development. Canadian Real Estate Investment Trust Contested Merger. This press release for Choice Properties and CREIT contains forward-looking statements about the proposed acquisition by Choice Properties of CREIT. The proposed transaction is subject to approval under the Competition Act and by the TSX and the fulfillment of certain conditions, and there can be no assurance that any such approvals will be obtained and/or any such conditions will be met. The Trustees and executive officers of CREIT have agreed to vote their units in support of the transaction. A high-level overview of Canadian Apartment Properties Real Estate Investment Trust (CDPYF) stock. A merger arbitrage opportunity with over 9% upside for an estimated 6 to 9-month duration. Choice Properties is a leading Real Estate Investment Trust that creates enduring value through the ownership, operation and development of high-quality commercial and residential properties. H&R REIT (TSX: HR.UN) is one of Canada’s largest fully internalized real estate investment trusts with total assets of approximately $13.3 billion at September 30, 2020. The TSX has granted Choice Properties an exemption from the minority unitholder approval requirement that would otherwise technically apply to the conversion given that the number of Class B LP units to be issued to Loblaw exceeds 10% of the total number of outstanding units of Choice Properties (including Class B LP units/special voting units) on a standalone basis before giving effect to the transaction and the conversion of the Class C LP units is being accelerated to facilitate the financing of the transaction. A playback will be made available two hours after the event at (416) 849-0833; access code: 4295779. TORONTO, Oct. 20, 2020 (GLOBE NEWSWIRE) -- Starlight Group Property Holdings Inc. (“Starlight Group”) and KingSett Real Estate Growth LP No. TORONTO, May 4, 2018 /CNW/ - Choice Properties Real Estate Investment Trust (TSX:CHP.UN, " Choice Properties ") and Canadian Real Estate Investment Trust (TSX:REF.UN, " CREIT ") today announced the successful completion of the previously announced plan of arrangement (the … Assuming leadership roles at Choice Properties will be Mr. Stephen Johnson, as President and Chief Executive Officer, Mr. Rael Diamond, as Chief Operating Officer, and Mr. Mario Barrafato, as Chief Financial Officer. THE trust scheme of arrangement for the merger of OUE Commercial Real Estate Investment Trust (C-Reit) and OUE Hospitality Trust (H-Trust) on Wednesday morning became effective and binding. TD Securities Inc. is acting as financial advisor to Choice Properties and RBC Capital Markets is acting as financial advisor to CREIT. Each Class C LP unit will be valued at $10.00 and the Class B LP units issuable will be valued at the 20-day VWAP of Choice Properties units on the TSX at closing. For non-cultural investments: zero reviewable investment approvals and 82 notifications filed (43 for acquisitions and 39 for establishment of a new Canadian business) Country of origin of investor (non-cultural): U.S. (62 per cent), India (nine per cent), and U.K. (seven per cent) CREIT unitholders, who will own approximately 27% of the combined company, stand to benefit from substantial upside over the long-term, driven by the combined entity's financial stability, diversity and growth prospects. The retail portfolio (78% of NOI) is focused on necessity based retailers (85% of the retail assets) and provides a solid foundation of stable and growing cash flows. Readers are cautioned not to place undue reliance on these forward-looking statements, which reflect Choice Properties' and CREIT's expectations only as of the date of this release. Choice Properties' and CREIT's estimates, beliefs and assumptions are inherently subject to significant business, economic, competitive and other uncertainties and contingencies regarding future events and as such, are subject to change. Together, Choice Properties and the REIT will form Canada’s largest real estate investment trust with an enterprise value of approximately $16 billion and a significant development pipeline. The maximum amount of cash to be paid by Choice Properties will be approximately $1.65 billion and approximately 183 million units will be issued, based on the fully diluted number of CREIT units outstanding. Choice Properties' Board of Trustees has unanimously determined that the transaction is in the best interests of Choice Properties. residential equities real estate investment trust recommendation the offer and merger described in the accompanying documents form the principal parts of the transactions pursuant to which canadian apartment properties real estate investment trust (‘‘cap reit’’) proposes to acquire all of the issued and outstanding trust units (‘‘resreit units’’) of residential equities Canadian Apartment Properties Real Estate Investment Trust (CAPREIT) is a Canada-based open-ended real estate investment trust. These measures do not have a standard meaning prescribed by GAAP and therefore they may not be comparable to similarly titled measurers presented by other publicly traded companies, and should not be construed as an alternative to other financial measures determined in accordance with GAAP. 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