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TORONTO, May 9, 2019 /CNW/ – Choice Properties Real Estate Investment Trust (“Choice Properties” or the “Trust”) (TSX: CHP.UN) announced today that it has closed its previously announced public bought deal equity offering of 30,042,250 trust units (the “Units”) at a price of $13.15 per Unit (the “Offer Price”), for aggregate gross proceeds of approximately $395 million (the “Offering”). The Offering consisted of 26,237,250 Units sold on a bought basis to a syndicate of underwriters co-led by TD Securities Inc., RBC Capital Markets, BMO Capital Markets and CIBC Capital Markets (the “Underwriters”) and 3,805,000 Units purchased by George Weston Limited (TSX: WN), Choice Properties’ largest unitholder, pursuant to its pre-emptive rights for approximately $50 million at the Offer Price. The closing included 3,422,250 Units issued as a result of the exercise in full of the Underwriters’ over-allotment option.
The Offering was made under Choice Properties’ short form base shelf prospectus dated January 9, 2018. The terms of the Offering are described in a prospectus supplement dated May 2, 2019, which was filed with securities regulators in each of the provinces of Canada.
The net proceeds of the Offering will be used by the Trust to repay debt, thereby creating additional borrowing capacity to fund its previously announced residential development program, and for other business purposes.
The Units offered have not been registered under the U.S. Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements. This press release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the Units in any jurisdiction in which such offer, solicitation or sale would be unlawful.
About Choice Properties
Choice Properties, Canada’s premier diversified real estate investment trust, is the owner, manager and developer of a high-quality portfolio comprising 756 properties totaling approximately 67.7 million square feet of gross leasable area. The portfolio is comprised of retail properties, predominantly leased to necessity-based tenants, industrial, office and residential assets concentrated in attractive markets and offers an unmatched 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.
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 the MD&A section of Choice Properties’ First 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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