Choice Properties Real Estate Investment Trust to Issue $250 million of Series E Senior Unsecured Debentures

/NOT FOR DISTRIBUTION TO U.S. NEWS WIRE SERVICES OR DISSEMINATION IN THE UNITED STATES./

TORONTO, Feb. 2, 2015 /CNW/ - Choice Properties Real Estate Investment Trust ("Choice Properties" or the "Trust") (TSX: CHP.UN) announced today that it has agreed to issue $250 million aggregate principal amount of series E senior unsecured debentures (the "Debentures") of the Trust. The Debentures will bear interest at a rate of 2.297% per annum and will mature on September 14, 2020. The Debentures were sold at a price of $100.001 per $100 principal amount, with an effective yield of 2.297% per annum.

The Debentures are being offered on an agency basis by a syndicate of agents co-led by RBC Capital Markets, CIBC, TD Securities and BMO Capital Markets.  Subject to customary closing conditions, the offering is expected to close on February 5, 2015.

The net proceeds of the Debentures being offered will be used by the Trust to repay existing indebtedness and for general business purposes.

The offering is being made under Choice Properties' short form base shelf prospectus dated September 3, 2013. The terms of the offering will be described in a prospectus supplement, dated February 2, 2015, to be filed with Canadian securities regulators in each of the provinces of Canada.

It is a condition of closing of the offering that the Debentures be rated at least "BBB" with a "stable" trend by DBRS Limited and at least "BBB" by Standard and Poor's Ratings Service. The Debentures will rank equally with all other unsecured indebtedness of the Trust that has not been subordinated.

The Debentures being offered have not been registered under the U.S. Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements. This press release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the Debentures in any jurisdiction in which such offer, solicitation or sale would be unlawful.

About Choice Properties Real Estate Investment Trust
Choice Properties Real Estate Investment Trust is an owner, manager and developer of well-located retail and commercial real estate across Canada. Choice Properties' portfolio spans approximately 38.9 million square feet of gross leasable area and consists of 474 properties primarily focused on supermarket-anchored shopping centres and stand-alone supermarkets. Choice Properties' strategy is to create value by enhancing and optimizing its portfolio through development, acquisitions and active property management. Choice Properties' principal tenant is Loblaw Companies Limited, Canada's largest food retailer. 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 under the "Risk Factors" sections in Choice Properties' Third Quarter 2014 MD&A and current Annual Information Form.  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: Kim Lee, Vice President, Investor Relations and Planning & Analysis, Choice Properties Real Estate Investment Trust, t (416) 324-7899, e kim.lee@choicereit.ca


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