Dec 6 Loblaw Companies Ltd, Canada's
largest grocer, said on Thursday it plans to create a real
estate investment trust to acquire a significant portion of
Loblaw's real estate assets, a move that potentially unlocks
additional value for shareholders.
The company said it plans to sell units of the REIT by way
of an initial public offering and it estimates that Loblaw will
initially contribute real estate worth over C$7 billion ($7.05
billion) into the REIT.
Loblaw, majority owned by George Weston Ltd, said it
intends to retain a significant majority interest in the REIT.
The IPO is expected to be completed in mid-2013, subject to
prevailing market conditions and receipt of required regulatory
approvals, the company said.