REIT acquires 12 new properties across Canada
Further diversifying portfolio beyond restaurants
TORONTO, March 8 /CNW/ - Scott's Real Estate Investment Trust (TSX: SRQ.UN) ("Scott's REIT") announced today that it has finalized the acquisition of 12 retail properties from certain wholly owned subsidiaries of Shoppers Drug Mart Corporation (TSX: SC). This $30-million sale and leaseback transaction with Canada's largest full-service retail drug store chain, which closed March 5, 2010, represents Scott's REIT's largest transaction to date.
"Over the past year, Scott's REIT has remained in a strong position to pursue strategic acquisitions while still maintaining our ability to demonstrate value to our unitholders," said Evelyn Sutherland, Chief Financial Officer at Scott's REIT. "As we move forward in 2010, we will continue building on the positive momentum that we have generated and work towards further expanding and diversifying our portfolio."
With this acquisition, Scott's REIT now owns a portfolio of 219 retail properties and more than 930,000 square feet of retail space in seven provinces across Canada. The REIT has completed approximately $100 million in acquisitions since its IPO and this transaction further adds to and diversifies Scott's REIT's core holdings of health care, financial and restaurant properties.
Under the terms of the agreement, Scott's REIT will purchase a total of 153,998 square feet of predominantly single-tenant retail space in Alberta, Manitoba, Ontario, Nova Scotia and Quebec. The properties are all leased on a long-term basis to Shoppers Realty Inc. and will operate under the Shoppers Drug Mart(R) and Pharmaprix(R) banners.
Scott's REIT financed this acquisition with available cash and a $20-million loan facility.
About Scott's Real Estate Investment Trust
Scott's REIT (TSX: SRQ.UN) is Canada's premier small-box retail property owner with 219 current properties in seven provinces across Canada. Scott's REIT's properties are well-located and geographically diverse across Canada and nearly all properties are long-term quadruple net leases. The REIT has a 68.9 per cent interest in Scott's Real Estate LP. To find out more about Scott's Real Estate Investment Trust (TSX: SRQ.UN), visit our website at http://www.scottsreit.com.
This media release contains forward-looking statements. Such statements are based on current expectations that are subject to significant risks and uncertainties that are difficult to predict. Actual results might differ materially from projections suggested in any forward-looking statements due to factors such as the competitive nature of the quick service restaurant industry, the ability of Scott's REIT and Scott's Real Estate LP to execute a growth and development strategy, the reliance of Scott's REIT and Scott's Real Estate LP on key personnel, on Priszm LP and risk associated with the structure of income trusts. Scott's REIT and Scott's RE LP assume no obligation to update the forward-looking statements, or to update the reasons why actual results could differ from those reflected in the forward-looking statements. Additional information identifying risks and uncertainties is contained in Scott's REIT filings with the Canadian securities regulators, available at www.sedar.com.
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