CNW Telbec - November 16, 2009
Scott's Real Estate Investment Trust (TSX: SRQ.UN) ("Scott's REIT") announced today that it has signed a purchase agreement with certain wholly owned subsidiaries of Shoppers Drug Mart Corporation (TSX:SC), Canada's largest retail drug store chain, to acquire 12 retail properties across Canada. The $30-million sale and leaseback transaction, subject to satisfactory completion of due diligence and other customary closing conditions, is scheduled to be completed by the end of the year.
Throughout the tight credit markets, Scott's REIT has demonstrated the strong performance and financial flexibility needed to pursue strategic acquisitions, while maintaining stable, consistent cash distributions to its unitholders. Over the past four years, the REIT has created a successful and sustainable business model by focusing solely on "small-box" retail properties less than 50,000 sq. ft. With this acquisition Scott's will have completed more than $100 million in profitable acquisitions since its IPO, making it one of the industry's top performers.
"In 2005, we recognized an opportunity to build a profitable niche market in Canada by focusing primarily on small-box properties," said Bitove. "This acquisition further validates the success of that strategy as we continue to expand beyond the quick-service restaurants to include strong national tenants in growth industries such as pharmacies, banks and other reliable sectors."
Once the acquisition is complete, Scott's REIT will own a portfolio of 219 retail properties in seven provinces across Canada. Under the terms of the agreement, Scott's REIT will purchase a total of 148,169 sq. ft. of single and multi-tenant retail space in Nova Scotia, Quebec, Ontario, Manitoba and Alberta. The properties are leased long-term to Shoppers Realty Inc. and are tenanted by Shoppers Drug Mart, Pharmaprix and Shoppers Home Health Care stores.
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