TORONTO, ONTARIO--(Marketwired - Dec. 19, 2016) - Partners Real Estate Investment Trust ("Partners," or "the REIT") (TSX:PAR.UN) announces that it has executed a Purchase and Sale Agreement with Choice Properties Real Estate Investment Trust ("Choice Properties") (TSX:CHP.UN) regarding the REIT's Washington Park property in Courtenay, British Columbia. The disposition price for the property is $12.8 million. This valuation represents a gain on the sale of the asset, which is expected to close on December 22, 2016.
After repaying the mortgage for approximately $6.7 million and after considering transaction costs, the net proceeds generated from this sale are approximately $5.8 million. These funds will immediately improve liquidity and will subsequently be deployed against other maturing loan(s), thereby reducing Partners' debt level.
Washington Park is a retail strip centre composed of two buildings that comprise a total of 32,652 square feet. The property is shadow anchored by a Real Canadian Superstore and Gas Bar located on a Choice Properties owned site. Choice Properties also owns development land adjacent to the property.
"We are pleased to announce the sale of Washington Park," stated Jane Domenico, Partners' Chief Executive Officer. "By securing an attractive valuation for this asset, we are moving forward with our plan to strengthen Partners' financial position."
About Partners REIT
Partners REIT is a growth-oriented real estate investment trust focused on the expansion and management of a portfolio of 35 (as a result of this transaction) retail and mixed-use community and neighbourhood shopping centres. These properties are located in both primary and secondary markets across British Columbia, Alberta, Manitoba, Ontario, and Quebec, and comprise a total of approximately 2.5 million square feet of leasable space.
About Choice Properties REIT
Choice Properties Real Estate Investment Trust is an owner, manager and developer of well-located commercial real estate across Canada. Choice Properties' portfolio spans approximately 43.3 million square feet of gross leasable area and consists of 535 properties primarily focused on supermarket- and drug store-anchored shopping centres and stand-alone supermarkets and drug stores. Choice Properties' strategy is to create value by enhancing and optimizing its portfolio through accretive acquisitions, strategic development and active property management. Choice Properties' principal tenant and largest Unitholder is Loblaw Companies Limited, Canada's largest retailer. Choice Properties' strong alliance with Loblaw positions it well for future growth. For more information, visit Choice Properties' website at www.choicereit.ca and Choice Properties' issuer profile at www.sedar.com.
Certain statements included in this press release constitute forward-looking statements, including, but not limited to, those identified by the expressions "expect," "will" and similar expressions to the extent they relate to Partners REIT. The forward- looking statements are not historical facts but reflect Partners REIT's current expectations regarding future results or events. These forward looking statements are subject to a number of risks and uncertainties that could cause actual results or events to differ materially from current expectations, including access to capital, regulatory approvals, intended acquisitions and general economic and industry conditions. Although Partners REIT believes that the assumptions inherent in the forward-looking statements are reasonable, forward-looking statements are not guarantees of future performance and, accordingly, readers are cautioned not to place undue reliance on such statements due to the inherent uncertainty therein.