Canadian Real Estate Investment Trust (CREIT) has acquired a portfolio of eight retail properties from Canadian Tire for C$137.3 million. Canadian Tire has leased each of the eight properties back under 15-year triple-net leases at current market rental rates, with escalating contractual rents over the term. The properties have all been either significantly renovated or expanded within three years by Canadian Tire. The sale and leaseback form is somewhat atypical of Toronto-based CREIT’s acquisition patterns, according to Adam Paul, the company\u2019s vice president for investments, who spoke with CPN today .The stores range from 54,000 to 130,000 square feet and total 740,000 square feet on 60 acres of land located in British Columbia (1), Alberta (3), Ontario (1), Quebec (2) and Nova Scotia (1). According to the CREIT website, this is only the second acquisition that the firm has made this year. In early July, the company acquired and effective 50 percent interest in an industrial portfolio located in Calgary for approximately C$41.8 million. The portfolio includes four industrial properties and one parcel of land, all of which are clustered in the Eastlake Industrial Centre in southeast Calgary. The portfolio is 100 percent leased with an average remaining lease term of ten years. CREIT owns more than 150 properties in across Canada. The portfolio contains more than 21 million square feet of leasable space. CREIT invests in industrial, office and retail properties. The company holds about 7.8 million square feet of industrial space, 3.1 million square feet of office space and 5.8 million square feet of retail space.\u201cOur goal is to generate 50 percent of our income from retail properties, 25 percent from industrial and 25 percent from office,\u201d Paul said. \u201cWe\u2019re pretty close to that now. The reason that the square footages we own in each asset class don\u2019t conform to the revenue percentages is the price differences among the asset classes. Tenants pay much less for industrial than retail and office space.\u201d<\/p>\n","protected":false},"excerpt":{"rendered":"
Canadian Real Estate Investment Trust (CREIT) has acquired a portfolio of eight retail properties from Canadian Tire for C$137.3 million. Canadian Tire has leased each of the eight properties back under 15-year triple-net leases at current market rental rates, with escalating contractual rents over the term. The properties have all been either significantly renovated or…<\/p>\n","protected":false},"author":1314,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[4],"tags":[],"class_list":["post-1003847132","post","type-post","status-publish","format-standard","hentry","category-regions"],"acf":[],"yoast_head":"\n