TORONTO–(BUSINESS WIRE)–Slate Asset Management (“Slate”), a global alternative investment platform targeting real assets, and Carlyle Communities, a leading developer of mixed-use communities in the Greater Toronto Area, have announced today that they have sold the jointly owned three-acre site at 6 Dawes Road in Toronto, Ontario (“6 Dawes” or “the site”) to Fitzrovia Real Estate (“Fitzrovia”), a vertically integrated developer and asset manager of Class-A rental communities across the Greater Toronto Area, alongside an institutional capital partner.

The site, which is currently operating as a self-storage facility, has been rezoned for high-rise residential use by Slate, together with Carlyle Communities, and will be developed by Fitzrovia into a premier rental community comprising approximately 1,000 Class-A residential units.

6 Dawes sits at the intersection of Main Street and Danforth Avenue in Toronto’s popular Danforth Village neighbourhood. Located adjacent to the Danforth GO Train Station and a short walk from the TTC’s Main Street Subway Station, the site offers exceptional access to transit and connectivity to the City of Toronto’s downtown core, making it uniquely positioned for a residential rental offering.

Slate acquired the site together with Carlyle Communities in 2019. Recognizing the value of the site’s unique location near public transportation, Slate and Carlyle Communities began the entitlement process to rezone 6 Dawes into a high-rise, mixed-use residential development in late 2019. Through private mediation with the City, neighbouring landowners and other local agencies, a settlement offer was reached with the City in late 2021 allowing for approximately 1.1 million square feet of buildable density at the site.

“From the outset, we saw 6 Dawes as an exciting city building opportunity, recognizing the site’s potential to become a vibrant residential hub providing a range of housing options, invaluable connectivity and premium amenities,” said Lucas Manuel, Partner at Slate. “We took a creative, partnership approach to a complex project, working in collaboration with various stakeholder groups to bring to bear a truly unique residential development site that will soon provide an entirely new class of rental product.”

Naram Mansour, President at Carlyle Communities added: “Large, under-utilized, transit-oriented sites like this one are increasingly rare in Toronto. Against the backdrop of Ontario’s affordable housing crisis, we knew the best and highest use for this site was as a residential development, and we are very pleased to have reached an agreement with the team at Fitzrovia, who shares our vision of turning 6 Dawes into a premier residential community.”

“We are proud to bring to life another major rental project for the City of Toronto,” said Adrian Rocca, Founder and CEO at Fitzrovia. “This development will directly target young families and downsizers who continue to seek very limited options in the market. We look forward to not only delivering a beautiful product but also leveraging our passion for hospitality and programming to bring an exceptional living experience to the Danforth neighbourhood.”

Fitzrovia will implement a variety of ESG initiatives across the site including a significant public park with enhanced connectivity to the neighbourhood, water re-use and retention programs, lower window-to-wall ratios to reduce energy consumption and will target a minimum of LEED Gold certification.

The transaction closed in February 2022. Fitzrovia expects to complete the development in early 2026.

About Slate Asset Management

Slate Asset Management is a global alternative investment platform targeting real assets. We focus on fundamentals with the objective of creating long-term value for our investors and partners. Slate’s platform has a range of real estate and infrastructure investment strategies, including opportunistic, value add, core plus, and debt investments. We are supported by exceptional people and flexible capital, which enable us to originate and execute on a wide range of compelling investment opportunities. Visit slateam.com to learn more.

About Carlyle Communities

Carlyle Communities is a Toronto based real estate developer specializing in the development of infill communities across the Greater Toronto Area. Carlyle Communities invests in residential and commercial real estate strategically located in urban growth markets with scale in close proximity to higher order transit. Since its founding in 2010, Carlyle Communities has invested in 10+ development projects across the Greater Toronto Area, representing 2,000+ residential units and $1.3 billion of real estate. For more information, please visit https://www.carlylecommunities.com.

About Fitzrovia

Fitzrovia is a vertically integrated developer and asset manager of rental communities across the Greater Toronto Area with approximately $4.6 billion of assets under management. Fitzrovia partners with public institutions, pension plans and high net worth investors who have an investment bias towards long term cash flow generating assets. The firm’s “build-to-core” strategy is focused on institutional quality development of well-located rental properties near major employment nodes and/or public transit. Fitzrovia places an intense focus on active lifestyle management and offering exceptional customer service to our valued residents. Fitzrovia’s customer-first approach means all design and construction decisions are deeply rooted in consumer insights to ensure our resident needs are not only met but exceeded. At Fitzrovia we think differently and build differently.

For more information, please visit https://fitzrovia.ca/ and follow @FitzroviaRealEstate on Instagram

Contacts

Slate Asset Management
Karolina Kmiecik

Director of Communications

Karolina@slateam.com

Carlyle Communities
Brandon Young

Director of Investments and Asset Management

brandon@carlylecommunities.com

Fitzrovia
Ryan Funt

Director of Marketing

rfunt@fitzrovia.ca

TORONTO–(BUSINESS WIRE)–#ChoiceProperties–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 six high-quality office properties in Toronto, Vancouver, and Montreal (the “Portfolio”) to Allied Properties Real Estate Investment Trust (“Allied”) for an aggregate purchase price of $794 million, excluding transaction costs (the “Transaction”). The purchase price will be satisfied through the issuance of approximately 11.8 million exchangeable Class B limited partnership units (“Class B Units”) of Allied Properties Exchangeable Limited Partnership, an affiliated entity of Allied, and a promissory note in the amount of $200 million. The Class B Units were valued at $50.30 per unit and are exchangeable into, and economically equivalent to, publicly traded trust units of Allied (“Allied Units”).

“We have made the strategic decision to focus our time and capital on the opportunities available in our core business of essential retail and industrial, our growing residential platform and our robust development pipeline,” said Rael Diamond, President and Chief Executive Officer of Choice Properties. “The transaction allows us to exchange our interest in the portfolio for equity in Canada’s leading office operator, and gives us greater flexibility to manage capital allocation in future years.”

Choice Properties currently holds an interest in 16 office properties representing 8% of the Trust’s total portfolio. After the completion of the Transaction, Choice Properties will continue to hold an interest in 10 office properties representing approximately 4% of the Trust’s total portfolio. Approximately 70% of the value of the remaining 10 office properties is comprised of properties in the Greater Toronto Area that are primarily leased to other affiliated entities in the Weston Group and are strategic assets for Choice Properties.

Choice Properties has significant opportunities in the medium-term to deploy capital to its core asset classes of essential retail, industrial and residential. These opportunities include a robust development pipeline representing over 10.5 million square feet of gross leasable area.

Transaction Details

The Portfolio includes office properties at 110 Yonge Street, 525 University Avenue, and 175 Bloor Street East in Toronto, 1508 West Broadway and 1185 West Georgia Street in Vancouver, and 1010 Sherbrooke Street West in Montreal.

The Portfolio is being sold in a tax-efficient manner. The Class B Units are exchangeable into, and economically equivalent to, Allied Units, and will be accompanied by a corresponding number of special voting units of Allied. There will be no restriction on the exchange of Class B Units into Allied Units, but the Allied Units (if exchanged) will be subject to a lock-up on the closing of the Transaction, such that 25% of the Class B Units or Allied Units, as applicable, will be released from lock up every three months following the first anniversary of closing of the Transaction.

The promissory note will mature on December 31, 2023 and bear interest at a 1% annual coupon in 2022 and a 2% annual coupon in 2023, payable quarterly in arrears.

The Transaction is subject to compliance with the Competition Act (Canada), approval of the Toronto Stock Exchange for the issuance of Class B Units, and other closing conditions customary in transactions of this nature. Subject to the receipt of all regulatory approvals and satisfaction of customary closing conditions, Choice Properties expects to close the Transaction before the end of the second quarter of 2022. RBC Capital Markets is acting as financial advisor to Choice Properties and Torys LLP is acting as legal advisor. Goldman Sachs Canada, Scotiabank and Aird & Berlis advised Allied in connection with the Transaction.

About Allied Real Estate Investment Trust

Allied is a leading operator of distinctive urban workspace in Canada’s major cities and network-dense urban data center (“UDC”) space in Toronto. Allied’s mission is to provide knowledge-based organizations with workspace and UDC space that is sustainable and conducive to human wellness, creativity, connectivity and diversity. Allied’s vision is to make a continuous contribution to cities and culture that elevates and inspires the humanity in all people.

For more information, visit Allied’s website at www.alliedreit.com and Allied’s issuer profile at www.sedar.com.

About Choice Properties Real Estate Investment Trust

Choice Properties is a leading Real Estate Investment Trust that creates enduring value through the ownership, operation and development of high-quality commercial and residential properties.

We believe that value comes from creating spaces that improve how our tenants and communities come together to live, work, and connect. We strive to understand the needs of our tenants and manage our properties to the highest standard. We aspire to develop healthy, resilient communities through our dedication to social, economic, and environmental sustainability. In everything we do, we are guided by a shared set of values grounded in Care, Ownership, Respect and Excellence.

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, including the expected closing of the Transaction. 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 2021 Annual 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.

Contacts

For further information, please contact investor@choicereit.ca

Mario Barrafato

Chief Financial Officer

t: (416) 628-7872 e: Mario.Barrafato@choicereit.ca