Choice Properties to acquire Canadian REIT in $3.9bn deal

Choice Properties Real Estate Investment Trust has announced that it has agreed to acquire Canadian Real Estate Investment Trust (CREIT) in combined cash and stock deal worth $3.9bn.

The merger will combine CREIT’s portfolio with that of Choice Properties, including Loblaw as its most significant tenant, creating a company with 752 facilities and over 69mn square feet of leasable area.

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“Choice Properties' expanded diversified real estate portfolio, anchored by Canada's largest retailer, will provide unitholders of both Choice Properties and CREIT the opportunity to capitalize on the future growth and value creation opportunities of this strategic transaction,” said John Morrison, President and CEO of Choice Properties.

CREIT will receive $22.50 in cash and 2.49 Choice Properties shares per unit, equating to $53.61 per share.

“This transformational combination creates immediate value for CREIT and provides tremendous opportunity for Choice Properties to capitalize on Canada's leading development pipeline and create long term value,” said Stephen Johnson, CEO of CREIT. “Together, the combined REIT is uniquely positioned to deliver results for unitholders as the owner, manager and developer of a high-quality portfolio of diversified assets.”

A special meeting between CREIT shareholders is set to take place in April, whereby the company will seek to gain approval of the deal.