Choice Properties Real Estate Trust (REIT) has announced that it is selling 30 Loblaw grocery stores and warehouses across Canada.
The $426 million deal includes 27 standalone retail properties and three distribution centres in smaller towns in every Canadian province and territory except PEI and Nunavut, reports the Financial Post.
"We are pleased to execute on this opportunity to recycle capital," said Rael Diamond, president and CEO of Choice Properties REIT. "Along with the recent issuance of equity, this transaction further strengthens our balance sheet by reducing leverage and providing additional capacity to fund our significant development program."
The buyer, who has not been identified, also has the option to acquire two additional standalone retail properties for an additional $29 million.
The Financial Post says the transaction provides some relief to a tight commercial market that has seen sales drop thanks to a scarcity of large portfolios.
The transaction will close September 30 and the proceeds will be used to pay debt. Choice Properties REIT controls around $9.7 billion in assets and was spun out of Loblaw Companies last year through a $460 million initial offering.
The full announcement, including a list of the sold properties, can be accessed here.