Opérations et transactions|15 juillet 2013
Loblaw subsidiary Choice Properties Real Estate Investment Trust completes C$460 million initial public offering and C$600 million senior unsecured debentures offering
Torys acted as counsel to Loblaw Companies Limited and Choice Properties Real Estate Investment Trust with a team that included Patricia Koval, Michael Zackheim, Robbie Leibel and David Leith (corporate/securities), Rose Bailey, David Dell and Andy Gibbons (real estate), Amanda Balasubramanian (lending), Dennis Mahony and Michael Fortier (environmental), Mitch Frazer, Lynne Lacoursière and Tom Stevenson (pensions and employment), Corrado Cardarelli and Grace Pereira (Canadian tax), James Guadiana, Peter Keenan and Cécile Antier (U.S. tax) and Andy Beck (U.S. securities).
On July 5, 2013, Loblaw Companies Limited (Loblaw) announced that Choice Properties Real Estate Investment Trust (the REIT) completed its previously announced initial public offering of 40,000,000 trust units of the REIT at a price of C$10.00 per unit. The offering raised gross proceeds of C$400 million. Concurrently, the REIT also closed its public offering of C$600 million aggregate principal amount of senior unsecured debentures.
Pursuant to the underwriting agreement, on July 15, 2013 the underwriters exercised in full their option to purchase 6,000,000 additional trust units of the REIT, at a price of C$10.00 per trust unit for aggregate consideration of C$60 million. The exercise of the over-allotment option increased the total proceeds of the offering to approximately C$460 million.
The REIT used the proceeds of its initial public offering to indirectly acquire from Loblaw a portfolio of real estate that consists of 425 properties totaling approximately 35.3 million square feet of gross leasable area (GLA), comprising 415 retail properties, one office complex and nine warehouse properties (the Initial Properties). The aggregate purchase price for the portfolio (Initial Properties) was approximately C$7 billion.
As described in the prospectuses registered on May 24, 2013, the Initial Properties represent approximately 75% of Loblaw's owned real estate. Loblaw is the REIT's most significant tenant, representing, on closing, approximately 91% of its annual base minimum rent and 88% of its GLA. At closing, Loblaw owned commercial properties comprising an aggregate of approximately 12 million square feet of gross leasable area. Loblaw has advised the REIT that its current intention, subject to market conditions, is to offer to sell to the REIT the significant majority of its remaining owned property over the next 10 years.
In addition to the offering of trust units to the public, subsidiaries of George Weston Limited, the parent of Loblaw, acquired C$200 million of trust units on closing. The initial public offering was joint bookrun by CIBC, RBC Capital Markets and TD Securities Inc.
The proceeds from the debenture offering were used to repay indebtedness owing to Loblaw. The debenture offering was sold on an agency basis being joint bookrun by CIBC, RBC Capital Markets, TD Securities Inc. and BMO Capital Markets.
Choice Properties REIT is an unincorporated, open-ended real estate investment trust primarily focused on managing and acquiring supermarket-anchored shopping centres, stand-alone supermarkets and other retail properties.
Loblaw, a subsidiary of George Weston Limited, is Canada's largest food retailer and a leading provider of drugstore, general merchandise and financial products and services.
Further information can be found on the websites of Choice Properties REIT and Loblaw.
Pursuant to the underwriting agreement, on July 15, 2013 the underwriters exercised in full their option to purchase 6,000,000 additional trust units of the REIT, at a price of C$10.00 per trust unit for aggregate consideration of C$60 million. The exercise of the over-allotment option increased the total proceeds of the offering to approximately C$460 million.
The REIT used the proceeds of its initial public offering to indirectly acquire from Loblaw a portfolio of real estate that consists of 425 properties totaling approximately 35.3 million square feet of gross leasable area (GLA), comprising 415 retail properties, one office complex and nine warehouse properties (the Initial Properties). The aggregate purchase price for the portfolio (Initial Properties) was approximately C$7 billion.
As described in the prospectuses registered on May 24, 2013, the Initial Properties represent approximately 75% of Loblaw's owned real estate. Loblaw is the REIT's most significant tenant, representing, on closing, approximately 91% of its annual base minimum rent and 88% of its GLA. At closing, Loblaw owned commercial properties comprising an aggregate of approximately 12 million square feet of gross leasable area. Loblaw has advised the REIT that its current intention, subject to market conditions, is to offer to sell to the REIT the significant majority of its remaining owned property over the next 10 years.
In addition to the offering of trust units to the public, subsidiaries of George Weston Limited, the parent of Loblaw, acquired C$200 million of trust units on closing. The initial public offering was joint bookrun by CIBC, RBC Capital Markets and TD Securities Inc.
The proceeds from the debenture offering were used to repay indebtedness owing to Loblaw. The debenture offering was sold on an agency basis being joint bookrun by CIBC, RBC Capital Markets, TD Securities Inc. and BMO Capital Markets.
Choice Properties REIT is an unincorporated, open-ended real estate investment trust primarily focused on managing and acquiring supermarket-anchored shopping centres, stand-alone supermarkets and other retail properties.
Loblaw, a subsidiary of George Weston Limited, is Canada's largest food retailer and a leading provider of drugstore, general merchandise and financial products and services.
Further information can be found on the websites of Choice Properties REIT and Loblaw.