/NOT FOR DISTRIBUTION TO U.S. NEWS WIRE SERVICES OR DISSEMINATION IN THE
UNITED STATES./
BRAMPTON, ON, July 5, 2013 /CNW/ - Loblaw Companies Limited ("Loblaw" or
the "Company") (TSX: "L") announced today that Choice Properties Real
Estate Investment Trust ("Choice Properties" or the "REIT") (TSX:
CHP.UN) has completed a $400 million initial public offering of trust
units (the "Units"), as well as a concurrent offering of $600 million
aggregate principal amount of senior unsecured debentures. Choice
Properties also completed a $200 million offering of Units to George
Weston Limited (Loblaw's majority shareholder). In connection with the
closing of the initial public offering, Loblaw sold a portfolio of 425
properties (the "Portfolio of Properties") indirectly to Choice
Properties for a total purchase price of approximately $7 billion.
As at closing, Loblaw held an approximate 83.1% effective interest in
Choice Properties (or an approximate 81.7% effective interest if the
over-allotment is exercised in full) on a fully diluted basis through
ownership of 21,500,000 Units and all of the Class B limited
partnership units of Choice Properties Limited Partnership (the
"Partnership"), which are economically equivalent to and exchangeable
for Units. In addition, Loblaw holds all of the outstanding Class C
limited partnership units of the Partnership and has received $2.6
billion aggregate principal amount of promissory notes from the
Partnership, of which $600 million was repaid on the closing date from
the proceeds of the REIT offering of senior unsecured debentures.
The Portfolio of Properties represents approximately 35.3 million square
feet of gross leasable area, comprising of 415 retail properties, one
office complex and nine warehouse properties. The Portfolio of
Properties represents approximately 75% of Loblaw's owned real estate
square footage. At closing, Loblaw owned commercial properties
comprising an aggregate of approximately 12 million square feet of
gross leasable area. Loblaw has advised the REIT that its current
intention, subject to market conditions, is to offer to sell to the
REIT the significant majority of its remaining owned property over the
next 10 years.
Loblaw will be the REIT's most significant tenant for the foreseeable
future. At closing, Loblaw represented approximately 91.2% of the
REIT's annual base minimum rent and 88.3% of the REIT's gross leasable
area.
About Loblaw Companies Limited
Loblaw Companies Limited, a subsidiary of George Weston Limited, is
Canada's largest food retailer and a leading provider of drugstore,
general merchandise and financial products and services. Loblaw is one
of the largest private sector employers in Canada. With more than 1,000
corporate and franchised stores from coast to coast, Loblaw and its
franchisees employ approximately 134,000 full-time and part-time
employees. Through its portfolio of store formats, Loblaw is committed
to providing Canadians with a wide, growing and successful range of
products and services to meet the everyday household demands of
Canadian consumers. Loblaw is known for the quality, innovation and
value of its food offering. It offers Canada's strongest control
(private) label program, including the unique President's Choice®, no
name® and Joe Fresh® brands. In addition, the Company makes available
to consumers President's Choice® financial services and offers the PC®
points and PC Plus™ loyalty program. For more information, visit
Loblaw's website at www.loblaw.ca and Loblaw's issuer profile at www.sedar.com.
Forward -Looking Statements
This press release may contain forward-looking information within the
meaning of applicable securities legislation, which reflects Loblaw's
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 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, changes in economic and market conditions, and
other risks and uncertainties discussed in the Company's materials
filed with the Canadian securities regulatory authorities from time to
time, including the Enterprise Risks and Risk Management section of the
Management's Discussion and Analysis ("MD&A") and the MD&A included in
the Company's 2012 Annual Report - Financial Review. 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.
SOURCE: Loblaw Companies Limited
