SmartREIT acquires SmartCentres Platform and portfolio of properties from Mitchell Goldhar and SmartCentres

On May 28, 2015, Smart Real Estate Investment Trust (formerly Calloway Real Estate Investment Trust) (SmartREIT) and its affiliates completed the acquisition of the SmartCentres platform from Mitchell Goldhar and SmartCentres as part of a $1.16-billion transaction, making SmartREIT a fully integrated real estate developer and operator by adding SmartCentres’ platform of development, leasing, planning, engineering, architecture, and construction capabilities.

The transaction also included the acquisition by SmartREIT and its affiliates of a $1.1-billion portfolio of 24 properties located principally in Ontario and Québec. The portfolio includes 20 open-format Walmart Supercentres shopping centres owned by Mitchell Goldhar, SmartCentres and joint venture partners, principally Wal-Mart Canada Realty Inc.

These properties will add 3.6 million square feet of leased retail space to SmartREIT’s current 27.3 million square feet of largely open-format shopping centre space. A further 1.9 million square feet is expected to be developed over time. As part of the transaction, Calloway Real Estate Investment Trust changed its name to Smart Real Estate Investment Trust.

Mitchell Goldhar and SmartCentres were represented by SmartCentres’ in-house counsel Joseph Amato and by Davies Ward Phillips & Vineberg LLP with a team including Gregory Howard, Peter Hong, Steven Martin, Mindy Gilbert, Elie Roth (tax), Adam Fanaki (competition) and Pawel Mielcarek.

Also acting were Brett Tkatch and Jeffrey Warren of Blaney McMurtry LLP in Ontario; Daniel Martin of De Grandpré Chait LLP in Québec; and John Cross of Miller Thomson LLP in Alberta.

Wal-Mart Canada Realty Inc. was represented by Walmart in-house counsel Peter Prattas and by Davies Ward Phillips & Vineberg LLP, with a team that included Gregory Howard, Peter Hong, Steven Martin, Mindy Gilbert, Elie Roth (tax), Adam Fanaki (competition) and Pawel Mielcarek.

SmartREIT and its affiliates were represented by Osler, Hoskin & Harcourt LLP, with a team that included Christopher Murray, Rod Davidge, Tim Watson, Tara Law, Lauren Lefcoe, Aria Kashefi, Jack Silverson (tax) and Shuli Rodal (competition).