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Canadian REIT buys stake in Edmonton property

Canadian Real Estate Investment Trust has acquired a 50-per-cent stake in a set of Edmonton retail properties for $39.2-million, the property company announced Wednesday.

CREIT said it will assume a $5.7 million first mortgage, carrying an interest rate of 5.9 per cent and a term to maturity of 8.2 years for properties that form part of the South Edmonton Common shopping centre.

The centre is currently made up of 2.1 million square feet of retail space and includes an IKEA, Wal-Mart, Home Depot and Loblaw Superstore.

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CREIT's stake includes 60,000 square feet of fully developed leasable area as well as property under redevelopment and retail development land.

Existing tenants include Tim Hortons/Wendy's, Petro-Canada and The Keg Steakhouse. The average remaining lease term for the properties is about eight years.

Once fully developed, the total leasable area of all the real estate acquired by CREIT will be about 550,000 square feet, representing a total investment of about $65-million.

"South Edmonton Common is an exceptional property that has evolved into one of Canada's most successful unenclosed shopping centres," said Stephen Johnson, CREIT's president and chief executive officer.

The shopping centre was originally developed by privately-owned Cameron Development Corp. and Grosvenor Canada Limited.

Cameron will own the remaining 50-per-cent interest in the properties and will continue to be the development manger for the undeveloped retail lands CREIT acquires.

CREIT is a real estate investment trust dedicated to acquiring high-quality real estate assets. It owns a range of retail, industrial and office properties.

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