TORONTO, June 3, 2022 /CNW/ - Choice Properties Real
Estate Investment Trust ("Choice Properties" or the "Trust") (TSX:
CHP.UN) and Loblaw Companies Limited ("Loblaw") (TSX: L) announced
today that the Trust exercised its previously announced equity
conversion right from Rice Group to acquire a 75% ownership
interest in 154 developable acres of industrial land in East
Gwillimbury in the Greater Toronto
Area (the "Property"), and that Loblaw intends to build a
1.2 million square foot, automated, multi-temperature industrial
facility on part of the Property to add capacity and create new
capabilities for the retailer (the "Distribution Facility"). The
Property is strategically located at the corner of Highway 404 and
Green Lane East, with excellent access to major highways.
The development plan for the Property is for the Trust to build
a multi-phase industrial park with the potential for approximately
1.8 million square feet of new generation logistics space (the
"Development"). For the first phase of the Development, the Trust
and Loblaw entered into an approximately 100-acre land lease.
Choice Properties and Rice Group's total initial cost of the
project is approximately $170
million, including land and site preparation. Preparation of
the site for the first and following phases is anticipated to take
place over a period of 15 months. The cost of the Distribution
Facility is already contemplated in Loblaw's capital planning and
projections and Loblaw expects to bring the Distribution Facility
into its operations in the first quarter of 2024.
"This development is a unique opportunity for Choice Properties
to scale its existing industrial portfolio, and further
demonstrates the benefits of our strong and strategic relationship
with Loblaw," said Rael Diamond,
President and Chief Executive Officer of Choice Properties. "The
development is a significant opportunity in a key market to develop
industrial land alongside the Rice Group, who is a long-standing
development partner of ours."
"This new facility reflects our continued drive to advance our
supply chain to better serve our customers and meet their evolving
needs," said Robert Sawyer, Chief
Operating Officer, Loblaw. "This is also a strong demonstration of
the benefits of our strategic relationship with Choice
Properties."
About Choice Properties Real Estate Investment Trust
Choice Properties is a leading Real Estate Investment Trust that
creates enduring value through the ownership, operation and
development of high-quality commercial and residential properties.
Choice Properties currently holds 114 industrial properties
totaling 17.2 million square feet. With the Development, Choice
Properties now has approximately 6.5 million square feet under
development or in various stages of the rezoning and planning
process, further expanding its pipeline of opportunity to grow its
industrial portfolio.
Choice Properties believes that value comes from creating spaces
that improve how its tenants and communities come together to live,
work, and connect. The Trust strives to understand the needs of its
tenants and manage its properties to the highest standard. Choice
Properties aspires to develop healthy, resilient communities
through its dedication to social, economic, and environmental
sustainability. In everything it does, the Trust is guided by a
shared set of values grounded in Care, Ownership, Respect and
Excellence.
For more information, visit Choice Properties' website at
www.choicereit.ca and Choice Properties' issuer profile at
www.sedar.com.
About Loblaw Companies Limited
Loblaw is Canada's
food and pharmacy leader, and the nation's largest retailer. Loblaw
provides Canadians with grocery, pharmacy, health and beauty,
apparel, general merchandise, financial services and wireless
mobile products and services. With more than 2,400 corporate,
franchised and Associate-owned locations, Loblaw, its franchisees
and Associate-owners employ more than 190,000 full- and part-time
employees, making it one of Canada's largest private sector employers.
Loblaw's purpose – Live Life Well® – puts first the needs and
well-being of Canadians who make one billion transactions annually
in the company's stores. Loblaw is positioned to meet and exceed
those needs in many ways: convenient locations; more than 1,050
grocery stores that span the value spectrum from discount to
specialty; full-service pharmacies at nearly 1,400 Shoppers Drug
Mart® and Pharmaprix® locations and close to 500 Loblaw locations;
PC Financial® services; affordable Joe Fresh® fashion and family
apparel; and four of Canada's
top-consumer brands in Life Brand®, Farmer's MarketTM, no name® and
President's Choice®.
About Rice Group
Rice Group is a vertically integrated retail, industrial and
infrastructure developer. Rice Group's vertical integration
supports and provides site works, servicing, construction
management and design and approval for internal projects and Rice
partnerships. Rice Group manages the development of a portfolio in
excess of 1200 acres primarily in the GTA. The portfolio consists
of approximately 5 million square feet on industrial and commercial
space with more than 10 million square feet in the pipeline.
Choice Properties Forward-Looking Statements
This press release may contain forward-looking information
within the meaning of applicable securities legislation, which
reflects Choice Properties' current expectations regarding future
events. Forward-looking information is based on a number of
assumptions and is subject to a number of risks and uncertainties,
many of which are beyond Choice Properties' control that could
cause actual results and events to differ materially from those
that are disclosed in or implied by such forward-looking
information. Such risks and uncertainties include, but are not
limited to, Choice's ability to successfully complete the
Development and the financial costs and returns associated with it,
and the factors discussed in Choice Properties' current Annual
Information Form and First Quarter 2022 Report to Unitholders.
Choice Properties does not undertake any obligation to update such
forward-looking information, whether as a result of new
information, future events or otherwise, except as expressly
required by applicable law. All forward-looking statements
contained in this press release are made as of the date hereof and
are qualified by these cautionary statements.
Loblaw Forward-Looking Statements
This press release may contain forward-looking information
within the meaning of applicable securities legislation, which
reflects Loblaw's current expectation regarding future events.
There can be no assurance regarding the ability of Loblaw to
successfully complete the Distribution Facility or realize on the
benefits associated with it. Forward-looking information is based
on a number of assumptions and is subject to a number of risks and
uncertainties, many of which are beyond Loblaw's control that could
cause actual results and events to differ materially from those
that are disclosed in or implied by such forward-looking
information. Such risks and uncertainties include, but are not
limited to, the factors discussed in Loblaw's current Annual
Information Form and First Quarter 2022 MD&A. Loblaw does not
undertake any obligation to update such forward-looking
information, whether as a result of new information, future events
or otherwise, except as expressly required by applicable law. All
forward-looking statements contained in this press release are made
as of the date hereof and are qualified by these cautionary
statements.
SOURCE Loblaw Companies Limited