Scott's REIT closes second sale and leaseback purchase of Shoppers Drug Mart properties for $33-million

REIT acquires nine new properties in largest property transaction to date.

TORONTO, Sept. 26, 2011 /CNW/ - Scott's Real Estate Investment Trust (TSX: SRQ.UN) ("Scott's REIT") announced today that it has finalized the acquisition of nine retail properties from certain wholly owned subsidiaries of Shoppers Drug Mart Corporation (TSX: SC). The $33-million sale and leaseback transaction is the second purchase agreement between the REIT and Canada's largest full-service retail drug store chain. It is also Scott's REIT's largest transaction since its inception.

Under the terms of the agreement, Scott's REIT will purchase a total of 146,093 square feet of predominantly single-tenant retail space in Ontario and Saskatchewan. The properties are all leased on a long-term basis to Shoppers Realty Inc. and will operate under the Shoppers Drug Mart® banner.

Commenting on the transaction, John Bitove, Chief Executive Officer of Scott's REIT, said "These retail properties - tenanted by Canada's most popular health, beauty and convenience retailer - are a fantastic addition to our portfolio as we further diversify our tenant base and provide maximum value to our unitholders."

With this acquisition, Scott's REIT now owns a portfolio of 229 retail properties and more than 1.1 million square feet of retail space in eight provinces across Canada. The REIT has completed more than $140 million in acquisitions since its IPO and this transaction further contributes to and diversifies Scott's REIT's core holdings of health care, financial and restaurant properties.

Scott's REIT financed this acquisition with certain proceeds from its recently completed convertible debenture offering and a $22.6-million first mortgage secured by the properties.

About Scott's Real Estate Investment Trust

Scott's REIT (TSX: SRQ.UN) is Canada's premier small-box retail property owner with 229 properties in eight provinces across Canada. Scott's REIT's properties are well located and geographically diverse across Canada with the majority of all properties containing long-term quadruple net leases. The REIT has approximately 75.6 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

Forward-looking Statements

This document contains certain information that may constitute forward-looking information within the meaning of securities laws. In some cases, forward-looking information can be identified by the use of terms such as "may", "will", "should", "expect", "plan", "anticipate", "believe", "intend", "estimate", "predict", "potential", "continue" or other similar expressions concerning matters that are not historical facts. Forward-looking information may relate to management's future outlook and anticipated events or results, and may include statements or information regarding future growth opportunities and potential and expected cash distributions or cash distribution levels. In particular, information regarding the REIT's monthly cash distributions and information relating to the impact of the REIT's recent acquisitions on annual revenues and interest expense is forward-looking information. Forward-looking information is based on certain factors and assumptions regarding, among other things, occupancy rates, property expense and capital expenditures. While the REIT considers these assumptions to be reasonable based on information currently available to it, they may prove to be incorrect. Forward looking-information is subject to certain factors, including risks and uncertainties, which could cause actual results to differ materially from what is currently expected. Such factors include risks relating to the REIT's reliance on Priszm, the REIT's largest tenant, risks associated with investment in real property, competition, reliance on key personnel, financing and refinancing risks, environmental matters, tenant risks, risks related to current economic conditions and other risk factors more particularly described in the REIT's Annual Information Form for the year ended December 31, 2010. You should not place undue importance on forward-looking information and should not rely upon this information as of any other date. Other than as required by applicable Canadian securities law, the REIT does not undertake to update this information at any particular time. Additional information identifying risks and uncertainties is contained in Scott's REIT filings with the Canadian securities regulators, available at

SOURCE Scott's Real Estate Investment Trust

For further information:

For investor information, please contact:
Trish Moran

For media information, please contact:
Trevor Boudreau

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Scott's Real Estate Investment Trust

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