CT REIT, which owns hundreds of retail locations across the country — most of them housing Canadian Tire locations — announced this week it will buy the Orillia Square Mall and Collingwood Centre from retail property company RioCan.
The two area malls are among seven being snapped up by Canadian Tire. All of the malls being purchased include a Canadian Tire location.
The following is a news release issued by CT Real Estate Investment Trust:
TORONTO — CT Real Estate Investment Trust ("CT REIT") (TSX:CRT.UN) announced today that it has entered into an agreement to purchase seven properties from RioCan Real Estate Investment Trust ("RioCan") at a total investment of $200 million, before transaction costs.
"We are delighted to be purchasing these well-located properties, each of which is tenanted by Canadian Tire, and in some cases, other members of the Canadian Tire Family of Companies," said Ken Silver, President and Chief Executive Officer, CT REIT. "With the insight we have into retail store performance as well as the attractive fundamentals of the markets in which these properties are located, we are extremely pleased with these additions to our growing portfolio."
The properties are located in Collingwood, Hamilton, Orillia, St. Catharines and Sudbury, Ontario; Yorkton, Saskatchewan; and Oliver, British Columbia. Together, they represent approximately 1,283,000 square feet of incremental gross leasable area ("GLA"). CT REIT is acquiring the portfolio at a weighted average going-in cap rate of 6.3 percent and will be funding these investments through its credit facilities. The table below summarizes the new properties:
|Property||Location||Square feet||Major tenants|
Canadian Tire, Sport Chek, Mark's,
|Upper James Plaza||Hamilton, ON||126,000||Canadian Tire, Canadian Tire Gas+, Metro|
|Orillia Square Mall||Orillia, ON||318,000||Canadian Tire, No Frills, The Brick, Dollar Tree|
|GoodLife Centre||St. Catharines, ON||144,000||Canadian Tire (call centre), GoodLife Fitness|
|Sudbury Place||Sudbury, ON||148,000||Canadian Tire, LCBO, BMO|
|Parkland Mall||Yorkton, SK||264,000||Canadian Tire, Save-On-Foods, Shoppers Drug Mart, Winners|
|Southwinds Crossing||Oliver, BC||73,000||Canadian Tire, Mark's, Buy-Low Foods|
CT REIT expects to redevelop and re-lease portions of the Orillia Square property during the first few years of ownership to enhance financial returns and better position the asset in its marketplace. Excluding Orillia Square, the portfolio has an occupancy rate of 98.5 percent.
Closings on the properties are subject to closing conditions and are expected to occur in December 2017 and/or Q1 2018.