A Toronto-based real estate investment trust has purchased two Ottawa shopping centres that have American retailing giant Wal-Mart as a principal tenant.
Calloway REIT announced Thursday it has signed an agreement to buy the buildings, located close to Terry Fox Drive in Kanata and at the corner of Clyde Avenue and Baseline Road southwest of downtown.
The purchase price for the two properties is $155 million, according to Huw Thomas, the firm's president and CEO.
The property on Baseline Road is 246,000 square feet. This includes the shopping centre and a five-storey office building that is currently 75 per cent leased, the company said in a news release.
The Kanata location has 190,000 square feet of retail space, the company said, with another 20,000 square feet set to be added in the future.
Both shopping centres are 100 per cent occupied.
"We are delighted to be adding these high quality, national tenant dominated shopping centres to Calloway's existing strong portfolio of open format shopping centres," said Mr. Thomas in a news release.
Calloway expects the deal for the properties, which it said will close in the third quarter of 2013, will immediately turn a profit.
It bought the properties from a joint venture between Wal-Mart and SmartCentres Realty Inc.
The firm has purchased similar properties in the past. In 2007, it announced it was buying Wal-Mart anchored shopping centres in Orleans and Pembroke.
Calloway also announced Thursday it was buying similar shopping centres in Niagara Falls and Port Perry.