Choice Properties Real Estate Investment Trust Completes $650 million Issuance of Series I and Series J Senior Unsecured Debentures

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TORONTO, Jan. 12, 2018 /CNW/ - Choice Properties Real Estate Investment Trust ("Choice Properties" or the "Trust") (TSX: CHP.UN) announced today that it has completed its previously announced issuance of $650 million aggregate principal amount of senior unsecured debentures of the Trust in two series. The offering included (i) $300 million aggregate principal amount of series I senior unsecured debentures bearing interest at a rate of 3.01% per annum and maturing on March 21, 2022 and (ii) $350 million aggregate principal amount of series J senior unsecured debentures bearing interest at a rate of 3.546% per annum and maturing on January 10, 2025 (collectively, the "Debentures").

The offering was made under Choice Properties' short form base shelf prospectus dated January 9, 2018. The terms of the offering are described in a prospectus supplement dated January 10, 2018, which was filed with securities regulators in each of the provinces of Canada.

The net proceeds of the Debentures will be used by the Trust to repay existing indebtedness, including an intention to redeem in full the $400 million aggregate principal amount of its 3.554% series A senior unsecured debentures due July 5, 2018, and for general business purposes.

DBRS Limited has provided the Debentures with a credit rating of "BBB" with a "Positive" trend and Standard and Poor's Ratings Services has provided the Debentures with a credit rating of "BBB". The Debentures rank equally with all other unsecured indebtedness of Choice Properties that has not been subordinated.

The Debentures were sold on an agency basis by a syndicate of agents co-led by RBC Capital Markets, TD Securities, CIBC Capital Markets and BMO Capital Markets. The Debentures offered have not been registered under the U.S. Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements. This press release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the Debentures in any jurisdiction in which such offer, solicitation or sale would be unlawful.

About Choice Properties Real Estate Investment Trust

Choice Properties Real Estate Investment Trust is an owner, manager and developer of well-located retail and commercial real estate across Canada. Choice Properties' portfolio spans approximately 44.1 million square feet of gross leasable area and consists of 546 properties primarily focused on supermarket and drug store anchored shopping centres and stand-alone supermarkets and drug stores. Choice Properties' strategy is to create value by enhancing and optimizing its portfolio through accretive acquisitions, strategic development and active property management. Choice Properties' principal tenant and largest Unitholder is Loblaw Companies Limited, Canada's largest retailer. Choice Properties' strong alliance with Loblaw positions it well for future growth. For more information, visit Choice Properties' website at www.choicereit.ca and Choice Properties' issuer profile at www.sedar.com.

Forward-Looking Statements

This press release may contain forward-looking information within the meaning of applicable securities legislation, which reflects Choice Properties' current expectations regarding future events. Forward-looking information is based on a number of assumptions and is subject to a number of risks and uncertainties, many of which are beyond Choice Properties' control that could cause actual results and events to differ materially from those that are disclosed in or implied by such forward-looking information. Such risks and uncertainties include, but are not limited to, the factors discussed in the MD&A section of Choice Properties' Third Quarter 2017 Report to Unitholders. Choice Properties does not undertake any obligation to update such forward-looking information, whether as a result of new information, future events or otherwise, except as expressly required by applicable law. All forward-looking statements contained in this press release are made as of the date hereof and are qualified by these cautionary statements.

SOURCE Choice Properties Real Estate Investment Trust

Kim Lee, Vice President, Investor Relations and Business Intelligence, Choice Properties Real Estate Investment Trust, t [phone], e [email protected]