DBRS Assigns Ratings to Loblaws Distribution Centre First Mortgage

DBRS has assigned a rating of ‘A’ to the Mortgage Loan in relation to the Loblaws Distribution Centre located in Ajax, Ontario.

In 2008, a $95,000,000 loan at an interest rate of 5.49% was originated by The Standard Life Assurance Company of Canada (the Lender) for a term of ten years from June 1, 2008, amortized over 25 years (the Mortgage Loan or the Loan). The loan is secured by a 1.1 million square foot distribution facility located in Ajax, Ontario at 500 Bayly Street East, and is leased to Loblaw Companies Limited.

The DBRS rationale for the rating includes the long-term tenancy to an investment-grade tenant, an investment-grade recourse guarantor, the stability of the DSCR over the term and the maturity profile of the LTV, which will amortize to a 53% LTV upon maturity in 2018.

Notes:
All figures are in Canadian dollars unless otherwise noted.

The applicable methodology is Rating Real Estate, which can be found on our website under Methodologies.