July 5, 2013 / 2:33 PM / in 7 years

Loblaw REIT raises C$400 million in IPO; units open lower in debut

(Reuters) - Loblaw Cos Ltd (L.TO), Canada’s largest food retailer, said its real estate investment trust raised C$400 million in an initial public offering.

Choice Properties Real Estate Investment Trust (CHP_u.TO) sold 40 million units at C$10.00 per unit. The units debuted below their offer price at C$9.95 on the Toronto Stock Exchange.

The units were the most traded on the exchange, with more than 2 million units changing hands by 1010 ET on Friday.

The REIT also raised C$600 million ($570.8 million) through issuance of senior debentures and completed a C$200 million offering to George Weston Ltd (WN.TO), Loblaw’s biggest shareholder.

Loblaw had said it planned to spin off real estate worth more than C$7 billion into a REIT and sell units of the trust through an initial public offering in July.

The company said on Friday it sold a portfolio of 425 properties indirectly to the REIT for about C$7 billion.

Choice Properties initially plans to make monthly cash distributions of C$0.054167 per unit.

($1 = 1.0511 Canadian dollars)

Reporting by Bhaswati Mukhopadhyay in Bangalore

0 : 0
  • narrow-browser-and-phone
  • medium-browser-and-portrait-tablet
  • landscape-tablet
  • medium-wide-browser
  • wide-browser-and-larger
  • medium-browser-and-landscape-tablet
  • medium-wide-browser-and-larger
  • above-phone
  • portrait-tablet-and-above
  • above-portrait-tablet
  • landscape-tablet-and-above
  • landscape-tablet-and-medium-wide-browser
  • portrait-tablet-and-below
  • landscape-tablet-and-below