TORONTO, Sept. 20, 2019 /CNW/ - Choice Properties Real Estate Investment Trust ("Choice Properties" or the "Trust") (TSX: CHP.UN) announced today that it has entered into an agreement to sell a 30 property portfolio (the "Portfolio") for an aggregate sale price of approximately $426 million (the "Transaction") to a third party purchaser. The Transaction is subject to customary closing conditions and is scheduled to close on September 30, 2019.

The unencumbered Portfolio consists of 27 stand-alone retail properties and 3 distribution centres with an average lease term of approximately twelve years with Loblaw Companies Limited. The Portfolio is being sold at slightly above its IFRS carrying value and the proceeds from the Transaction will be used to repay debt.

"We are pleased to execute on this opportunity to recycle capital," said Rael Diamond, President and Chief Executive Officer. "Along with the recent issuance of equity, this transaction further strengthens our balance sheet by reducing leverage and providing additional capacity to fund our significant development program."

The purchaser has the option to acquire two additional stand-alone retail properties for an aggregate sale price of approximately $29 million. If exercised, the additional properties are scheduled to close in Q4 2019.

BMO Capital Markets Real Estate Inc. is acting as an advisor on this Transaction.

The properties in the Portfolio are:

About Choice Properties Real Estate Investment Trust
Choice Properties, Canada's preeminent diversified real estate investment trust, is the owner, manager and developer of a high-quality portfolio comprising 756 properties totaling 68.0 million square feet of gross leasable area. Choice Properties owns a portfolio comprised of retail properties predominantly leased to necessity‐based tenants; industrial, office and residential assets concentrated in attractive markets; and offers an impressive and substantial development pipeline. Choice Properties' strategic alliance with its principal tenant, Loblaw Companies Limited, the country's leading retailer, is a key competitive advantage providing long-term growth opportunities. 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 in Choice Properties' current Annual Information Form and Second Quarter 2019 Report to Unitholders. 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

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