Calloway Real Estate Investment Trust

Calloway Real Estate Investment Trust

September 13, 2010 18:31 ET

Calloway REIT Announces Closing of Purchase of Two Large Scale Walmart Anchored Centres in Ontario and Quebec

TORONTO, ONTARIO--(Marketwire - Sept. 13, 2010) -


Calloway REIT (TSX:CWT.UN) announced today that it has closed the previously announced acquisition of two new, unenclosed, large-scale, Walmart-anchored shopping centres, totalling 730,000 square feet, for a purchase price of approximately $131 million, including transaction costs. Over the next five years Calloway expects to invest a further $94 million as additional space is built and occupied in the centres.

The two centres will generate net rents of approximately $9.3 million per annum on initial closing and approximately $16.2 million per annum on completion, representing an approximate 5% increase to Calloway's current annual net rents and owned area. These two properties increase Calloway's total assets to $4.3 billion and add to Calloway's portfolio of 127 properties, of which, 93 are anchored by Walmart. Alongside Walmart, other national retailers operating in these two centres include Canadian Tire, Sobeys (IGA), Winners, and Reitmans. The weighted average lease term of both centres is 13.6 years.

Calloway financed the transaction, in part, with the issuance of 480,000 units of a subsidiary limited partnership at $21.60 per unit (the "LP Units"), exchangeable into Calloway REIT units on a one-for-one basis, representing approximately $10.4 million of the purchase price, and the balance with cash resources. The LP Units were issued to Mr. Mitchell Goldhar, owner of a 22.1% interest in Calloway and owner of SmartCentres.

This press release contains "forward looking statements" subject to various significant risks and uncertainties which may cause actual results, performances or achievements of Calloway to be materially different from any future results, performances or achievements expressed or implied by such forward looking statements. Such risk factors include, but are not limited to, risks associated with real property ownership, availability of cash flow, restrictions on redemption, general uninsured losses, future property acquisitions, environmental matters, tax related matters, debt financing, Unitholder liability, potential conflicts of interest, potential dilution, and reliance on key personnel. Calloway cannot assure investors that actual results will be consistent with these forward looking statements and Calloway assumes no obligation to update or revise them to reflect new events or circumstances.

Contact Information

  • Calloway Real Estate Investment Trust
    Simon Nyilassy
    President and Chief Executive Officer
    (905) 326-6400 ext. 7649
    (905) 326-0783 (FAX)
    Calloway Real Estate Investment Trust
    Bart Munn
    Chief Financial Officer
    (905) 326-6400 ext. 7631