N@N

Scott';s REIT purchases an additional $33 million in properties from Shoppers Drug Mart

^{Published on 2011-07-15 13:10:30 - Market Wire}
 

TORONTO, July 15, 2011 /CNW/ - Scott's Real Estate Investment Trust (TSX: SRQ.UN) ("Scott's REIT") today announced that it has signed a purchase agreement with certain wholly owned subsidiaries of Shoppers Drug Mart Corporation (TSX:SC) to acquire nine retail properties. The $33-million sale and leaseback transaction is subject to satisfactory completion of due diligence and other customary closing conditions and is scheduled to be completed within the third quarter of 2011.

Scott's REIT previously acquired 12 properties from Shoppers Drug Mart as part of a $30-million sale and leaseback transaction in March 2010.

Eight of the properties are located in Ontario and one is in Saskatchewan. Five of the nine locations are newly built and three properties are on long-term land leases. The properties are leased long-term to Shoppers Realty Inc. and are tenanted by Shoppers Drug Mart stores.

"This is part of Scott's REIT's goal of continuing to diversify our tenant base while growing our assets with strong national brands," said John Bitove, CEO of Scott's REIT.

About Scott's Real Estate Investment Trust

Scott's REIT (TSX: SRQ.UN) is Canada's premier small-box retail property owner with 220 properties in seven provinces across Canada. Scott's REIT's properties are well located and geographically diverse across Canada with the majority of all properties containing long-term quadruple net leases. The REIT has approximately 75.6 per cent interest in Scott's Real Estate LP. To find out more about Scott's Real Estate Investment Trust (TSX: SRQ.UN), visit our website at [ http://www.scottsreit.com ].

Forward-looking Statements

This document contains certain information that may constitute forward-looking information within the meaning of securities laws. In some cases, forward-looking information can be identified by the use of terms such as "may", "will", "should", "expect", "plan", "anticipate", "believe", "intend", "estimate", "predict", "potential", "continue" or other similar expressions concerning matters that are not historical facts. Forward-looking information may relate to management's future outlook and anticipated events or results, and may include statements or information regarding future growth opportunities and potential and expected cash distributions or cash distribution levels. In particular, information regarding the REIT's monthly cash distributions and information relating to the impact of the REIT's recent acquisitions on annual revenues and interest expense is forward-looking information. Forward-looking information is based on certain factors and assumptions regarding, among other things, occupancy rates, property expense and capital expenditures. While the REIT considers these assumptions to be reasonable based on information currently available to it, they may prove to be incorrect. Forward looking-information is subject to certain factors, including risks and uncertainties, which could cause actual results to differ materially from what is currently expected. Such factors include risks relating to the REIT's reliance on Priszm, the REIT's largest tenant, risks associated with investment in real property, competition, reliance on key personnel, financing and refinancing risks, environmental matters, tenant risks, risks related to current economic conditions and other risk factors more particularly described in the REIT's Annual Information Form for the year ended December 31, 2010. You should not place undue importance on forward-looking information and should not rely upon this information as of any other date. Other than as required by applicable Canadian securities law, the REIT does not undertake to update this information at any particular time. Additional information identifying risks and uncertainties is contained in Scott's REIT filings with the Canadian securities regulators, available at [ www.sedar.com ].