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NATIONAL SINGLE TENANT RETAIL PORTFOLIO

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Page 1: NATIONAL SINGLE TENANT - · PDF fileCBRE Limited ( CBRE ) is pleased to o er for sale, e Red Lobster Canada Portfolio; a 145,073 sq. . national restaurant platform comprising 19 free-standing

NATIONAL SINGLE

TENANT RETAIL PORTFOLIO

Page 2: NATIONAL SINGLE TENANT - · PDF fileCBRE Limited ( CBRE ) is pleased to o er for sale, e Red Lobster Canada Portfolio; a 145,073 sq. . national restaurant platform comprising 19 free-standing

CBRE Limited (“CBRE”) is pleased to offer for sale, The Red Lobster Canada Portfolio; a 145,073 sq. ft. national restaurant platform comprising 19 free-standing locations fully leased to Red Lobster (16) and Olive Garden (3) in Ontario, Alberta, Manitoba and Saskatchewan (the “Properties” or “Portfolio”). The Portfolio provides a rare opportunity to acquire a national retail platform of scale and with strong geographic diversity supported by premier street-front locations in each of the 15 markets represented. With an exceptional weighted average lease term remaining of 21.4 years, the Portfolio leases are absolute net to the landlord and incorporate annual contractual rental rate in-creases that provide an investor with a coveted combination of income security and growth potential in locations featuring excellent exposure, accessibility and long term viability.The 16 Red Lobster locations are fully leased to Red Lobster Canada Inc., a subsidiary of Golden Gate Capital, a San Francisco-based private equity firm with over $12 billion of capital under man-agement. Red Lobster is the world’s largest casual dining seafood restaurant company with over 700 locations worldwide commanding a ~50% market share in the seafood specialist category in North America and is the 5th largest casual dining chain overall.The Portfolio also includes three Olive Garden restaurants which are fully leased to GMRI Canada Inc., a subsidiary of Darden Restaurants, the world’s largest full-service restaurant company with over 1,500 restaurant locations across the United States and Canada. Darden Restaurants Inc. (NY-SE:DRI) is rated investment grade by Standard & Poor’s.

CBRE Limited (“CBRE”) is pleased to offer for sale, the National Single Tenant Retail Portfolio; a 145,105 sq. ft. national restaurant platform comprising 19 free-standing locations fully leased to Red Lobster (16) and Olive Garden (3) in Ontario, Alberta, Manitoba and Saskatchewan (the “Properties” or “Portfolio”). The Portfolio provides a rare opportunity to acquire a national retail platform of scale and with strong geographic diversity supported by premier street-front locations in each of the 15 markets represented. With an exceptional weighted average lease term remaining of 21.4 years, the Portfolio leases are absolute net to the landlord and incorporate annual contractual rental rate increases that provide an investor with a coveted combination of income security and growth potential in locations featuring excellent exposure, accessibility and long term viability.

The 16 Red Lobster locations are fully leased to Red Lobster Canada Inc., a subsidiary of Golden Gate Capital, a San Francisco-based private equity firm with over $12.0B of capital under management. Red Lobster is the world’s largest casual dining seafood restaurant company with over 700 locations worldwide commanding a ~50% market share in the seafood specialist category in North America and is the 5th largest casual dining chain overall.

The Portfolio also includes three Olive Garden restaurants which are fully leased to GMRI Canada Inc., a subsidiary of Darden Restaurants, the world’s largest full-service restaurant company with over 1,500 restaurant locations across the United States and Canada. Darden Restaurants Inc. (NYSE:DRI) is rated investment grade by Standard & Poor’s.

Landmark Opportunity to Acquire a National Street Front Retail Platform of ScaleThe National Single Tenant Retail Portfolio represents a landmark opportunity to acquire a significant portfolio of free-standing restaurant pads featuring both scale and geographic diversity. Incorporating 145,105 sq. ft. of leasable area in 19 assets, an investor is provided with diversified street-front retail exposure in 15 strong Canada retail markets including the Greater Toronto Area, Southwestern Ontario, Edmonton, Winnipeg, Ottawa, Regina and Saskatoon.

Long Term Quadruple Net Leases with Contractual Annual Rental Increases Structured primarily in master leases having long lease terms to expiry, the existing lease agreements are optimally structured to deliver an investor with stable, growing returns. The leases include annual rental rate escalations throughout the lease term with additional performance base escalations, and feature a weighted average lease term remaining of 21.4 years. Further, the leases are absolute net to the landlord with the tenant responsible for all operating costs, utilities and capital outlays providing an investor with reliable cash flow.

Premium Street Front Locations Featuring Excellent Exposure and AccessibilitySituated along primary retail roadways in major Canadian markets, the Portfolio provides an investor with a multi-dimensional investment opportunity. In addition to the exceptional long term income security and growth potential provided by the leases in place, the sites benefit from impact locations along primary arterial roadways ensuring the long term relevance and viability of the underlying real estate over the long term.

Best-in-Class Operational Management Provides Excellent Financial PerformanceRed Lobster Canada Inc. is a subsidiary of Golden Gate Capital, a renowned private equity firm that is one of the most active investors in the consumer sector with a focus on multi-unit and multi-channel companies. Golden Gate Capital has an unprecedented track record in identifying and acquiring undervalued companies and growing earnings through strategic partnerships with best-in-class management teams. Golden Gate Capital acquired Red Lobster Canada Inc. in July 2014 and has had an immediate effect, with the 16 Red Lobster locations that comprise part of the Portfolio posting annual sales revenue of $77.28M as of FY 2015 representing an increase of 4.3% over the previous fiscal year.

Free and Clear of Existing FinancingThe opportunity is being offered free and clear of existing financing, providing the opportunity for an investor to leverage the highly appealing income profile of the Portfolio in a historically low interest rate environment.

EXECUTIVESUMMARY

INVESTMENTHIGHLIGHTS

ALBERTA

Address Municipality Operator10111 171st Street Edmonton Red Lobster

10121 171st Street Edmonton Olive Garden

4111 Calgary Trail South NW Edmonton Red Lobster

4110 Gateway Boulevard NW Edmonton Olive Garden

ONTARIO

Address Municipality Operator2423 Fairview Street Burlington Red Lobster

3252 Sheppard Avenue East Toronto Red Lobster

368 Queen Street East Brampton Red Lobster

311 King Street West Oshawa Red Lobster

1732 King Street East Kitchener Red Lobster

319 Bayfield Street Barrie Red Lobster

1499 St. Laurent Boulevard Ottawa Red Lobster

6575 Tecumseh Road East Windsor Red Lobster

6220 Lundy’s Lane Niagara Falls Red Lobster

1600 LaSalle Boulevard Sudbury Red Lobster

667 Wellington Road South London Red Lobster

SASKATCHEWAN

Address Municipality Operator

890 Albert Street Regina Red Lobster

2501 8th Street East Saskatoon Red Lobster

MANITOBA

Address Municipality Operator

1540 Portage Avenue Winnipeg Red Lobster

1544 Portage Avenue Winnipeg Olive Garden

PROPERTYSUMMARY

Page 3: NATIONAL SINGLE TENANT - · PDF fileCBRE Limited ( CBRE ) is pleased to o er for sale, e Red Lobster Canada Portfolio; a 145,073 sq. . national restaurant platform comprising 19 free-standing

BRAD WALFORD*Sales AssociateT 416 495 [email protected]

CBRE LIMITED | 145 KING STREET WEST, SUITE 600 | TORONTO, ONTARIO | T 416 362 2244 | F 416 362 8085 | WWW.CBRE.CA

CBRE LIMITED | 2001 SHEPPARD AVENUE EAST, SUITE 300 | TORONTO, ONTARIO | T 416 494 0600 | F 416 494 6435 | WWW.CBRE.CA

For more information, please contact:

SEAN COMISKEY* Sales AssociateT 416 495 [email protected]

HILLEL L. ABERGEL*Vice PresidentT 416 815 [email protected]

PETER D. SENST*President Canadian Capital MarketsT 416 815 [email protected]

September 2015. This disclaimer shall apply to CBRE Limited, Real Estate Brokerage, and to all other divisions of the Corporation; to include all employees and independent contractors (“CBRE”). The information set out herein, including, without limitation, any projections, images, opinions, assumptions and estimates obtained from third parties (the “Information”) has not been verified by CBRE, and CBRE does not represent, warrant or guarantee the accuracy, correctness and completeness of the Information. CBRE does not accept or assume any responsibility or liability, direct or consequential, for the Information or the recipient’s reliance upon the Information. The recipient of the Information should take such steps as the recipient may deem necessary to verify the Information prior to placing any reliance upon the Information. The Information may change and any property described in the Information may be withdrawn from the market at any time without notice or obligation to the recipient from CBRE. CBRE and the CBRE logo are the service marks of CBRE Limited and/or its affiliated or related companies in other countries. All other marks displayed on this document are the property of their respective owners. All Rights Reserved.Mapping Sources: Canadian Mapping Services [email protected]; MapPoint, DMTI Spatial, Environics Analytics, Microsoft Bing, Google Earth

*Sales Reperesentative