George Weston to Invest $600M in Choice Properties

George Weston Limitée has committed to an equity placement of 600 millions de dollars in Choice Properties REIT. The commitment is tied to Choice Properties’ planned acquisition of real estate assets valued at approximately 5,0 milliards de dollars from First Capital.

Choice Properties expects to fund the acquisition by issuing about 1,7 milliard de dollars of new equity, with the remainder financed by debt, including assumption of certain First Capital debt. George Weston plans to fund its equity commitment using existing credit facilities and additional debt, and expects to receive about 38,0 million trust units.

After the acquisition closes, George Weston is expected to retain a majority position in Choice Properties with about 58% ownership.