Choice Properties Real Estate Investment Trust to Issue $450 million of Series C and Series D Senior Unsecured Debentures

/NOT FOR DISTRIBUTION TO U.S. NEWS WIRE SERVICES OR DISSEMINATION IN THE UNITED STATES./

BRAMPTON, ON, Feb. 3, 2014 /CNW/ - Choice Properties Real Estate Investment Trust ("Choice Properties" or the "Trust") (TSX: CHP.UN) announced today that it has agreed to issue, on an agency basis, $450 million aggregate principal amount of senior unsecured debentures (the "Debentures") of the Trust in two series (the "Debenture Offering").

The Debenture Offering is being made under Choice Properties' short form base shelf prospectus dated September 3, 2013. The terms of the Debenture Offering will be described in a prospectus supplement, dated February 3, 2014, to be filed with Canadian securities regulators in each of the provinces of Canada.

The Debenture Offering is expected to close on February 6, 2014.

The Debenture Offering includes $250 million principal amount of series C senior unsecured debentures with a 7-year term and a coupon of 3.498% per annum and $200 million principal amount of series D senior unsecured debentures with a 10-year term and a coupon of 4.293% per annum.  The Debentures have been provisionally rated "BBB" by DBRS Limited and the same rating is expected from Standard and Poor's Ratings Service. The Debentures will rank equally with all other unsecured indebtedness of the Trust that has not been subordinated.

The net proceeds of the Debenture Offering will be used by the Trust to repay existing indebtedness and for general business purposes.

The Debentures are being offered on an agency basis co-led by CIBC, RBC Capital Markets, TD Securities 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 commercial real estate across Canada. Choice Properties' portfolio spans approximately 36.2 million square feet of gross leasable area and consists of 433 properties primarily focused on supermarket-anchored shopping centres and stand-alone supermarkets. Choice Properties' strategy is to create value by enhancing and optimizing its portfolio through development, acquisitions and active property management. Choice Properties' principal tenant is Loblaw Companies Limited, Canada's largest food retailer. 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 under "Risk Factors" in Choice Properties Third Quarter 2013 MD&A, dated November 8, 2013.  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.

SOURCE: Choice Properties Real Estate Investment Trust

Kim Lee
Vice President, Investor Relations and
Financial Planning & Analysis
Choice Properties Real Estate Investment Trust
t [phone]
e [email protected]