Partners Real Estate Investment Trust (Partners) has sold three properties in Ontario to CT Real Estate Investment (CT REIT) for $34.9 million minus transaction costs.

The single buildings, leased to the Canadian Tire Corporation, Limited (CTC) and located in Brockville, Strathroy and Wasaga Beach, were originally built by CTC before being sold in 2008.

Jane Domenico, Partners’ acting chief executive officer, says the transaction will improve the strength of Partners’ balance sheet.

“These were high-quality properties. However, this transaction not only allowed Partners REIT to secure attractive valuations for these assets, but also allowed us to do so in relatively rapid fashion,” stated Domenico. “Our financial flexibility will benefit significantly as a result. As we move forward, Partners’ Board of Trustees continues to work with both management and its advisor, National Bank Financial, to identify longer-term strategic alternatives for Partners’ future.”

The purchase was funded with the assumption of three mortgages totalling $19.2 million and with a draw on CT REIT’s line of credit. The mortgages bear interest at 3.4 percent and mature January 1, 2018.