Choices Properties Real Estate Investment Trust, which Loblaw Companies spun out of in 2018 to become a pure-play retailer, plans to acquire two downtown Toronto real estate assets from Wittington Properties Limited.
The acquisition includes the remaining 60 per cent interest in West Block, a mixed-use site that combines retail shops anchored by a Loblaws grocery store and office space located on the northeast corner of Lake Shore Blvd. and Bathurst Street, and the Weston Centre, a multi-tenant office and retail site, including a Loblaws grocery store at Yonge Street and St. Clair Avenue. The two properties comprise about 585,000 square feet of leasable space.
Choice Properties announced previously that it had entered into a joint venture partnership with Wittington to revitalize and restore the original Loblaw Groceterias building to create West Block. Upon the completion of this acquisition, Choice Properties will hold a 100 per cent ownership interest in West Block. In addition, the Weston Centre will continue to serve as the head office of Choice Properties and its parent company, George Weston Limited.
"We are pleased to acquire these high-quality, well-located properties in Toronto," says Rael Diamond, president and CEO of Choice Properties. "George Weston Limited and affiliated companies account for approximately 55% of the net operating income with a weighted average lease term of approximately 9 years, which demonstrates Choice Properties' ability to generate stable and growing net operating income through strategic acquisitions."