TORONTO, Jan. 10, 2018 /CNW/ - CT Real Estate Investment Trust ("CT REIT") (TSX:CRT.UN) announced today that it has received from Sears Canada Inc. ("Sears") a notice to disclaim the Sears distribution centre lease in Calgary, Alberta, which CT REIT does not intend to oppose. It is expected that Sears will vacate the distribution centre on or before February 3, 2018.
The Sears Calgary distribution centre is comprised of two adjacent properties – a 625,000 square foot distribution centre located at 25 Dufferin Place SE and a 30,000 square foot building located at 5500 Dufferin Boulevard SE.
"CT REIT has entered into a 10-year lease with Canadian Tire Corporation ("CTC") for the building located at 25 Dufferin Place SE, as well as an additional six acres of land to be leased for trailer parking, commencing May 1, 2018," said Ken Silver, President and Chief Executive Officer, CT REIT. "This 625,000 square foot building, acquired in 2016, is strategically located, adjacent to CTC's main distribution centre for Western Canada, and has direct access to the Canadian Pacific intermodal facility along with easy access to the Deerfoot Trail and Stoney Trail highways."
CTC currently occupies and leases from CT REIT the 201,000 square foot building known as 11 Dufferin Place SE, which is next to 25 Dufferin Place SE. CTC will move its existing operations at 11 Dufferin Place SE to 25 Dufferin Place SE. It was a condition of CTC entering into the new lease that the lease for 11 Dufferin Place SE be terminated. CT REIT expects there will be an interruption in cash flows at 11 Dufferin Place SE as a result of the termination. Both 11 Dufferin Place SE and the 30,000 square foot building located at 5500 Dufferin Boulevard SE will be available for lease.
On December 22, 2017, CT REIT also acquired 5.5 acres of land located adjacent to 11 Dufferin Place SE for $4.2 million, completing the assembly of the block between 52 Avenue SE and the Canadian Pacific intermodal facility.
This press release contains forward-looking information that reflects management's current expectations related to matters such as the future plans for the properties located at 25 Dufferin Place SE, 11 Dufferin Place SE and 5500 Dufferin Boulevard SE, and the future financial performance and operating results of CT REIT. 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 press release may constitute forward–looking information, including but not limited to, statements concerning CTC's plans at 25 Dufferin Place SE, the timing and completion of CT REIT's leasing of 11 Dufferin Place SE and 5500 Dufferin Boulevard SE, and other statements concerning results, prospects or opportunities for CT REIT. 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.
The forward-looking statements and information contained herein are based on certain factors and assumptions as of the date hereof. CT 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, except as is required by applicable securities laws.
Information contained in or otherwise accessible through the websites referenced in this press release (other than CT REIT's profile on SEDAR at www.sedar.com) does not form part of this press release and is not incorporated by reference into this press release. All references to such websites are inactive textual references and are for information only.
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 over 325 properties totalling approximately 26 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 www.ctreit.com.
SOURCE CT Real Estate Investment Trust (CT REIT)