Canadian Real Estate Investment Trust
TSX : REF.UN

Canadian Real Estate Investment Trust

August 15, 2007 15:50 ET

Canadian Real Estate Investment Trust Acquires a 50% Interest in Dartmouth Crossing Shopping Centre

TORONTO, ONTARIO--(Marketwire - Aug. 15, 2007) - Canadian Real Estate Investment Trust (CREIT)(TSX:REF.UN) announced today that it has entered into an unconditional agreement to acquire an effective 50% interest in Dartmouth Crossing Shopping Centre, located in Dartmouth, Nova Scotia, part of the Halifax Regional Municipality (HRM).

Upon full development, Dartmouth Crossing will be the largest and most dominant shopping centre in Atlantic Canada. Inclusive of space directly owned by several retail anchors, the shopping centre will comprise approximately 1.5 million square feet of retail / commercial space (approximately 860,000 square feet exclusive of retailer-owned space).

Retailer-owned anchors include Wal-Mart, Costco, Home Depot, Canadian Tire and Empire Theatres.

Stephen Johnson, President and Chief Executive Officer of CREIT, said, "We believe that Dartmouth Crossing will be one of Canada's best retail assets in the power and lifestyle centre category. North American Development Group (NADG) has produced an outstanding retail project with a dominant market position. Dartmouth Crossing is our second co-venture with NADG (Carrefour de la Rive-Sud Shopping Centre in Boucherville, Quebec, was the first) and we are delighted to expand our partnership with them by acquiring an interest in another superb shopping centre."

Dartmouth Crossing will continue to be developed and managed by NADG, who will remain a partner in the property. Current tenants include Best Buy, Home Outfitters, Linens 'n Things, Golf Town, Michaels, Sport Chek, Staples and an outstanding roster of fashion, food and other retailers.

CREIT has a significant presence in the HRM through the ownership of a quality real estate portfolio comprised of office, industrial (primarily located in Burnside Park) and retail (primarily located in the Bayer's Lake node) properties. This new acquisition complements and strengthens CREIT's position in the Halifax region.

The initial closing occurred today and included approximately $75 million of the $135 million estimated purchase price (for CREIT's 50% interest). Approximately 490,000 square feet of leasable area (reflecting the 100% interest) was included in today's closing.

CREIT did not assume any debt on the acquisition. Approximately $115 million of new debt financing (which includes $44 million of refinanced principal amounts) was raised by CREIT on other properties in Q2 and Q3 2007 with an average term to maturity of 7.7 years and a weighted average interest rate of 5.2%. This debt financing was raised, in part, to provide funds for anticipated 2007 acquisitions, including Dartmouth Crossing.

CREIT is a real estate investment trust that is dedicated to accumulating a portfolio of high quality real estate assets, and delivering the benefits of such real estate ownership to unitholders. The primary benefit is a reliable, and over time, increasing cash distribution. CREIT owns a real estate portfolio in excess of 140 retail, industrial and office properties.

CAUTIONARY STATEMENTS REGARDING FORWARD-LOOKING STATEMENTS

This news release contains forward-looking statements relating to our operations and the environment in which we operate, which are based on our expectations, estimates, forecasts and projections. These statements are not future guarantees of future performance and involve risks and uncertainties that are difficult to control or predict. Therefore, actual outcomes and results may differ materially from those expressed in these forward-looking statements. Readers, therefore, should not place undue reliance on any such forward-looking statements. Further, a forward-looking statement speaks only as of the date on which said statement is made. We undertake no obligation to publicly update any such statement, to reflect new information or the occurrence of future events or circumstances.

Contact Information

  • Canadian Real Estate Investment Trust
    Adam Paul
    Vice President, Investments
    (416) 628-7798
    Email: apaul@creit.ca
    or
    Canadian Real Estate Investment Trust
    Stephen Johnson
    President & Chief Executive Officer
    (416) 628-7878
    Email: sjohnson@creit.ca
    Website: www.creit.ca