REIT acquires 29 Canadian shopping centers for $114.9M CAD

Homburg Canada Real Estate Investment Trust announced an agreement to attain a 100 percent interest of 29 neighborhood shopping centers, of which 24 are leased by Jean Couto Group.

The portfolios were purchased for $114.9 million CAD (USD $116.1M) plus transaction costs and will be acquired by Delek Global Real Estate. In total, it will add approximately 728,000 square feet of retail space to the REIT's portfolio.

"With this acquisition, the REIT continues to grow its retail footprint in Quebec and particularly in Montreal," Jim Beckerleg, President and Chief Executive Officer said. "This broad portfolio provides us with additional access to Jean Coutu Group and other high quality tenants, enabling us to further leverage our existing retail platforms in the Greater Montreal Area."

From the $114.9 million purchase, $74.6 million will be paid in existing mortgages and $40.3 million will be net equity, financed by cash on hand from REIT's credit line.

26 of the properties are within Quebec, primarily in Montreal, and three are in Ontario.