/NOT FOR DISTRIBUTION TO U.S. NEWS WIRE SERVICES OR DISSEMINATION IN THE
BRAMPTON, ON, May 24, 2013 /CNW/ - Loblaw Companies Limited ("Loblaw" or
the "Company") (TSX: L) and Choice Properties Real Estate Investment
Trust (the "REIT") announced today that the REIT has filed and obtained
receipts for two preliminary prospectuses in respect of its initial
public offering of trust units (the "Units") and a concurrent public
offering of two series of senior unsecured debentures (the
"Debentures") with the securities regulatory authorities of all
provinces and territories in Canada.
Loblaw has taken the initiative in creating the REIT in order to
optimize the value of the Company's real estate portfolio over time,
lower the cost of capital for real estate, and increase the speed of
development of new retail sites.
The portfolio of properties to be acquired by the REIT from Loblaw on
closing will consist of 425 properties totaling 35.3 million square
feet of gross leasable area ("GLA"), comprising 415 retail properties,
one office complex and nine warehouse properties ("the Initial
The Initial Properties represent approximately 75% of Loblaw's owned
The aggregate purchase price for the Initial Properties to be acquired
from Loblaw will be determined in connection with the pricing of the
Loblaw will be the REIT's most significant tenant for the foreseeable
future, representing approximately 91% of its annual base minimum rent
and 88% of its GLA on closing.
As of closing, the REIT's leases with Loblaw will have a weighted
average remaining lease term of 14 years, with a range of 10 to 18
In addition to the offering of Units to the public, George Weston
Limited, the parent of Loblaw, will acquire $200 million of Units on
The offering of Units is being joint bookrun by CIBC, RBC Capital
Markets and TD Securities Inc.
Concurrent with the initial public offering of Units, the REIT will also
offer two classes of senior unsecured debentures. The proceeds from
this issuance of debt by the REIT will be used to repay indebtedness
owing to Loblaw.
The closing of the offering of Units is not conditional upon the closing
of the offering of the Debentures.
The public offering of the Debentures will be sold on an agency basis
being joint bookrun by CIBC, RBC Capital Markets, TD Securities Inc.
and BMO Capital Markets.
Management expects that S&P and DBRS will provide the REIT with a
provisional issuer credit rating of "BBB" with a "stable" outlook, and
each series of Debentures with a provisional rating of "BBB" with a
"stable" outlook. Loblaw expects that both rating agencies will confirm
Loblaw's credit ratings at "BBB" with a "stable" outlook.
The preliminary prospectuses have not yet become final for the purpose
of a distribution of securities to the public. This press release does
not constitute an offer to sell or a solicitation of an offer to buy,
nor shall there be any sale or any acceptance of an offer to buy these
securities in any province or territory of Canada prior to the time a
receipt for the final prospectuses or other authorization is obtained
from the securities commission or similar regulatory authority in such
province or territory. Copies of the preliminary prospectuses are
available on SEDAR at www.sedar.com.
Completion of the initial public offerings of securities are subject to
and conditional upon the receipt of all necessary approvals, including
The Units and the Debentures have not been, nor will they be, registered
under the U.S. Securities Act of 1933, as amended, and may not be
offered, sold or delivered, directly or indirectly, in the United
States or to, or for the account or benefit of, ''U.S. persons'' (as
defined in Regulation S under the United States Securities Act of 1933,
as amended) except pursuant to certain exemptions. This press release
does not constitute an offer to sell or a solicitation of an offer to
buy any of the Units or the Debentures in the United States or to, or
for the account or benefit of, U.S. persons.
About Choice Properties Real Estate Investment Trust
Choice Properties Real Estate Investment Trust is an unincorporated,
open-ended real estate investment trust primarily focused on managing
and acquiring supermarket-anchored shopping centres, stand-alone
supermarkets and other retail properties. Its portfolio will represent
35.3 million square feet of gross leasable area in markets across
Canada. Loblaw is the REIT's most significant tenant.
About Loblaw Companies Limited
Loblaw Companies Limited, a subsidiary of George Weston Limited, is
Canada's largest food retailer and a leading provider of drugstore,
general merchandise and financial products and services. Loblaw is one
of the largest private sector employers in Canada. With more than 1,000
corporate and franchised stores from coast to coast, Loblaw and its
franchisees employ approximately 134,000 full-time and part-time
employees. Through its portfolio of store formats, Loblaw is committed
to providing Canadians with a wide, growing and successful range of
products and services to meet the everyday household demands of
Canadian consumers. Loblaw is known for the quality, innovation and
value of its food offering. It offers Canada's strongest control
(private) label program, including the unique President's Choice®, no
name® and Joe Fresh® brands. In addition, the Company makes available
to consumers President's Choice® financial services and offers the PC®
points and PC Plus™ loyalty program. For more information, visit
Loblaw's website at www.loblaw.ca and Loblaw's 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 Loblaw's
and the REIT's 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 Loblaw's or the REIT's 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, failure to complete the
initial public offering of Units and Debentures of the REIT and related
transactions, and the factors discussed under "Risk Factors" in the
preliminary prospectus of the REIT dated May 24, 2013 with respect to
the Units and the preliminary prospectus of the REIT dated May 24, 2013
with respect to the Debentures. Neither Loblaw nor the REIT 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.
SOURCE: Loblaw Companies Limited
For further information:
Vice President, Investor Relations and
Financial Planning & Analysis
Choice Properties Real Estate Investment Trust
Tel: (905) 861-2256
Senior Vice President, Investor Relations
Loblaw Companies Limited
Tel: (905) 861-2127