- CT REIT to acquire a facility of approximately 660,000 square feet and seven acres of excess land from Sears Canada Inc. at a total investment of approximately $84 million
TORONTO, April 1, 2016 /CNW/ - CT Real Estate Investment Trust ("CT REIT") (TSX: CRT.UN) announced today that it has waived its due diligence conditions in an agreement it entered into with Sears Canada Inc. ("Sears") for the sale and leaseback of the Sears Canada distribution centre ("DC") located at 25 Dufferin Place SE in Calgary, Alberta. The transaction remains subject to standard closing conditions and is expected to close in April 2016.
The property is located adjacent to a 201,000 square foot DC that was acquired by CT REIT in 2014 and is currently leased to Canadian Tire Corporation ("CTC") as well as being adjacent to CTC's other Calgary DC.
"With direct access to the Canadian Pacific Intermodal facility and easy access to Deerfoot Trail and the new Stoney Trail highways, the Sears property is very well located and a great addition to our portfolio," said Ken Silver, Chief Executive Officer, CT REIT. "The acquisition of the Sears DC is not only accretive to CT REIT, but provides us with a strategic position in a key distribution hub in Western Canada."
CT REIT proposes to use any combination of Class C limited partnership units, cash on hand, draws on its credit facility and/or proceeds of other new debt or equity financings to fund the transaction.
Forward Looking Statements
This document contains forward-looking information that reflects management's current expectations related to the acquisition of the Sears Canada Distribution Centre from Sears Canada Inc. and leaseback. Forward-looking statements are provided for the purposes of providing information about CT REIT's future outlook and anticipated events or results. Readers are cautioned that such information may not be appropriate for other purposes.
All statements other than statements of historical facts included in this document may constitute forward–looking information, including but not limited to, statements concerning the REIT's ability to complete the acquisition and leaseback transaction and the funding thereof, including the timing, terms and impact of such transactions on the REIT's business and financial results, and other statements concerning management's expectations relating to the possible or assumed future benefits and results, or assumptions in respect thereof. Forward-looking information is based on reasonable assumptions, estimates, analyses, beliefs and opinions of management made in light of its experience and perception of prospects and opportunities, current conditions and expected trends, as well as other factors that management believes to be relevant and reasonable at the date such information is provided.
By its very nature forward-looking information requires us to make assumptions and is subject to inherent risks and uncertainties, which give rise to the possibility that the REIT's assumptions, estimates, analyses, beliefs and opinions may not be correct and that the REIT's expectations and plans will not be achieved. Although the forward looking information contained in this press release is based on information, assumptions and beliefs which are reasonable and complete, this information is necessarily subject to a number of factors that could cause actual results to differ materially from management's expectations and plans as set forth in such forward-looking information for a variety of reasons. Some of the factors - many of which are beyond our control and the effects of which can be difficult to predict - include, but are not limited to, changes in economic and market conditions and other risks and uncertainties discussed in the REIT's materials filed with the Canadian securities regulatory authorities from time to time, including the "Risk Factors" section of our Annual Information Form for fiscal 2015 and our 2015 Management's Discussion and Analysis, as well as the Company's other public filings, available at www.sedar.com and at www.ctreit.com.
Investors and other readers are urged to consider the foregoing risks, uncertainties, factors and assumptions carefully in evaluating the forward-looking information and are cautioned not to place undue reliance on such forward-looking information. The forward-looking statements and information contained herein are based on certain factors and assumptions as of the date hereof. The REIT does not undertake to update any forward-looking information, whether written or oral, that may be made from time to time by it or on its behalf, to reflect new information, future events or otherwise, unless required by applicable securities laws.
About CT Real Estate Investment Trust
CT Real Estate Investment Trust (TSX:CRT.UN) is an unincorporated, closed end real estate investment trust formed to own income producing commercial properties primarily located in Canada. Its portfolio is comprised of 290 properties totaling over 21.5 million square feet of GLA, consisting primarily of retail properties located across Canada. Canadian Tire Corporation, Limited is CT REIT's most significant tenant. For more information, visit ctreit.com.
SOURCE CT Real Estate Investment Trust (CT REIT)
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