TORONTO — Priszm Income Fund has completed the sale of 65 restaurants located in Quebec to Olympus Food Inc.
With the completion of this sale, Priszm will no longer be a tenant of the REIT. Of the restaurant locations being sold, KEYreit is the landlord of 49 locations. KEYreit has provided Olympus with the necessary consents to assign the leases for the 49 locations and expects the Olympus purchase to close, effective Sept. 17.
“The Priszm matter has now reached its conclusion. We are very pleased to put this issue behind us,” said Teresa Neto, CFO of the REIT. “In March 2011, we started with 188 locations leased to Priszm. Today we have nearly 20 different tenants leasing these same properties, including well-known national tenants such as A&W, Pizza Pizza, Starbucks, McDonald’s and Subway; and even greater tenant diversification is expected as the REIT completes its final re-leasing plans. This final Priszm sale allows KEYreit to move on from this chapter in its history and to fully focus on growing the REIT with a strong, diversified and stable tenant base across Canada.”
Olympus Food (Canada) Inc. is a Canadian subsidiary of a pre-existing KFC franchisee in the Philippines and a related party to Hi-Flyer Food (Canada) Inc., the entity that purchased the Priszm restaurants in Alberta and Manitoba in May of this year.