This is a great move by Choice Properties as it provides diversification and more scale. It shows how Weston is moving towards greater diversification of their investment portfolio in general and making Choice Properties a key part of their strategy. As a holder of both Choice Properties and CREIT, I support this proposal and will choose the cash option.
Choice Properties Real Estate Investment Trust has signed a deal to acquire Canadian Real Estate Investment Trust (CREIT) for $3.9-billion in cash and stock. The combination of Choice Properties, which counts Loblaw as its principal tenant and largest unitholder, and CREIT will create a company with a diversified portfolio of 752 properties.
Loblaw Companies Limited supports Choice Properties REIT’s acquisition of Canadian Real Estate Investment Trust
To facilitate Choice Properties’ financing for the transaction, Loblaw has agreed to convert all of its outstanding Class C LP units of Choice Properties Limited Partnership with a face value of $925 million (“Class C LP units”) into Class B LP units of Choice Properties Limited Partnership (“Class B LP units”) on closing.