CT Real Estate Investment Trust Completes $263.5 Million Initial Public Offering

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TORONTO, Oct. 23, 2013 /CNW/ - CT Real Estate Investment Trust ("CT REIT") (TSX: CRT.UN) announced today that it has completed its initial public offering of 26,350,000 trust units (the "Units") of CT REIT (the "Offering") at a price of $10.00 per Unit. The Offering raised gross proceeds of $263.5 million.

The Units will commence trading today on the Toronto Stock Exchange ("TSX") under the symbol "CRT.UN".

CT REIT used a portion of the proceeds of the Offering to indirectly acquire, through CT REIT Limited Partnership (the "Partnership"), from Canadian Tire Corporation, Limited ("Canadian Tire") a portfolio of real estate that consists of 256 properties (the "Initial Properties") totalling approximately 19 million square feet of gross leasable area, comprised of 255 retail properties and one distribution centre. The aggregate purchase price for the Initial Properties was approximately $3.5 billion.

It is intended that the first distribution of CT REIT will be in the amount of $0.070194 per Unit for the period from today to November 30, 2013 and will be paid on December 13, 2013.  Thereafter, CT REIT intends to make monthly cash distributions of $0.054167 per Unit, which are initially expected to provide an annual yield of 6.50%.  Declared distributions will be paid on or about the 15^th day of each month to Unitholders of record at the close of business on the last business day of the immediately preceding month.

"With an outstanding portfolio made up of some of the best real estate locations in Canada, an investment grade credit rating, and Canadian Tire Corporation - one of the most recognized and trusted brands in the country - as our major tenant and majority unit holder, CT REIT is well-positioned for success and long-term growth," said Ken Silver, CEO, CT REIT. "We are excited to be completing the IPO and have a well-structured plan to make CT REIT a valuable investment for our unitholders."

The Offering was underwritten by a syndicate of investment banks with RBC Capital Markets and CIBC acting as joint bookrunners. CT REIT has granted the underwriters an over-allotment option, exercisable at any one time up to 30 days following the closing, to purchase up to an additional 3,952,500 Units, which if exercised in full, would increase the total gross proceeds of the Offering to approximately $303 million. The net proceeds of the over-allotment option would be used by CT REIT for future acquisitions, investments in properties and for general trust purposes.

As at closing, Canadian Tire holds an approximate 85.0% effective interest in CT REIT (or an approximate 83.1% effective interest if the over-allotment is exercised in full) on a fully diluted basis through ownership of 59,711,094 Units and all of the Class B limited partnership units of the Partnership, which are economically equivalent to and exchangeable for Units. In addition, Canadian Tire holds all of the outstanding Class C limited partnership units of the Partnership.

The Units have not been, nor will they be, registered under the U.S. Securities Act of 1933, as amended, and may not be offered, sold or delivered, directly or indirectly, in the United States or to, or for the account or benefit of, ''U.S. persons'' (as defined in Regulation S under the United States Securities Act of 1933, as amended) except pursuant to certain exemptions. This press release does not constitute an offer to sell or a solicitation of an offer to buy any of the Units or the Debentures in the United States or to, or for the account or benefit of, U.S. persons.

About CT Real Estate Investment Trust

CT Real Estate Investment Trust (TSX:CRT.UN) is an unincorporated, closed end real estate investment trust formed to own income producing commercial properties primarily located in Canada. Its initial portfolio is comprised of 256 properties totaling approximately 19 million square feet of GLA, consisting of 255 retail properties located across Canada and one distribution centre. Canadian Tire is CT REIT's most significant tenant.

Forward-Looking Statements

This press release contains forward-looking information within the meaning of applicable securities legislation, which reflects CT REIT's 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 CT REIT's 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 the final prospectus of CT REIT dated October 10, 2013. CT REIT 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: CT REIT

Media:  Amy Cole, 416-544-7655, [email protected]
Investors: Andrea Orzech, 416-480-3195, [email protected]