Loblaws will spin off real estate into $7B REIT

Written By Unknown on Kamis, 06 Desember 2012 | 22.39

Loblaw Companies Ltd. says it wants to unlock shareholder value by creating create one of the largest real estate investment trusts in Canada.

The grocery chain operator says it plans to contribute a significant portion of its real estate assets with a current market value of more than $7 billion to the planned REIT.

Units of the REIT are expected to be sold in an initial public offering expected to be completed in mid-2013, subject to regulatory approvals.

Details on pricing and the number of units to be offered were not disclosed.

However, Loblaw said it "intends to retain a significant majority interest."


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