Scott's REIT Signs Purchase Agreement With Shoppers Drug Mart

Scott's Real Estate Investment Trust (Scott's REIT) has signed a purchase agreement with certain wholly-owned subsidiaries of Shoppers Drug Mart to acquire 12 retail properties across Canada. The $30m sale and leaseback transaction, subject to satisfactory completion of due diligence and other customary closing conditions, is scheduled to be completed by the end of 2009.

Under the terms of the agreement, Scott's REIT will purchase a total of 148,169 sq. ft. of single and multi-tenant retail space in Nova Scotia, Quebec, Ontario, Manitoba and Alberta. The properties are leased long-term to Shoppers Realty and are tenanted by Shoppers Drug Mart, Pharmaprix and Shoppers Home Health Care stores.

John Bitove, chairman and CEO of Scott's REIT, said: “We are in a unique position to capitalize on the current real estate market. We believe this $30m acquisition will be a mutually beneficial relationship with Canada's largest retail drug store chain and will provide Scott's with further growth opportunities.

“In 2005, we recognized an opportunity to build a profitable niche market in Canada by focusing primarily on small-box properties. This acquisition further validates the success of that strategy as we continue to expand beyond the quick-service restaurants to include strong national tenants in growth industries such as pharmacies, banks and other reliable sectors.”

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