Loblaw Set to Create One of Canada’s Largest REITs

From the Globe and Mail:

Loblaw Cos. Ltd. is preparing to create what it says will be one of Canada’s largest real estate investment trusts.

The Toronto-based grocery giant says it wants to unlock value for shareholders and maximize the value of its real estate portfolio by establishing a REIT that will go public by the middle of 2013.

Loblaw estimates that it will initially contribute real estate with a current market value exceeding $7-billion to the REIT and wants to keep a significant majority interest in the REIT.

“The creation of the REIT is expected to build long-term value both for Loblaw and the REIT,” Loblaw chairman Galen Weston said in a news release Thursday.

Read more: http://www.theglobeandmail.com/globe-investor/loblaw-set-to-create-one-of-canadas-largest-reits/article6017572/

At a Glance: Loblaw in B.C.

  • Over 50 properties in B.C. with an assessed value of $870 Million
  • 24 properties in Metro Vancouver
  • Superstore on Marine Drive assessed value of $83 Million