Pure Industrial Real Estate Trust announces successful closing of two previously announced industrial portfolios for $108.96 million and provides corporate update

Richmond Portfolio:  Hopewell Distribution Centre (Building I), Richmond, BC (CNW Group/Pure Industrial Real Estate Trust (PIRET))

/Not for distribution to United States Newswire Services or for dissemination in the United States./

VANCOUVER, Dec. 20, 2012 /CNW/ - Pure Industrial Real Estate Trust ("PIRET" or the "REIT") (TSX: AAR.UN) today announced the successful closing of three fully leased single-tenant, and one fully leased multi-tenant, income producing industrial properties representing an aggregate of 979,782 square feet of gross leasable area ("GLA"). The properties are located in British Columbia, Ontario and Alberta, and were acquired for an aggregate purchase price of $108,960,000. The acquisitions consist of: (a) a portfolio comprising one multi-tenant and one single-tenant property located in Richmond, British Columbia (collectively, the "Richmond Portfolio") and (b) a portfolio of two single-tenant properties located in Edmonton, Alberta and Toronto, Ontario (collectively, the "Edmonton-Toronto Portfolio").

The Richmond Portfolio consists of two multi-tenant properties comprising an aggregate GLA of 927,351 square feet which are 100% leased to four high quality multi-national and regional tenants with a weighted average remaining lease term of approximately five years. The properties are located at 16131 and 16133 Blundell Road, Richmond, British Columbia, and were acquired for an aggregate purchase price of $102,460,000, representing a 6.16% going-in capitalization rate. PIRET acquired the properties using proceeds from its bought deal financing that closed on December 12, 2012 and through the assumption of the first mortgage representing 55.83% of the purchase price at a weighted interest rate of 4.71% per annum.

The Edmonton-Toronto Portfolio consists of two single-tenant properties with an aggregate GLA of 52,782 square feet. The properties are located at 170 Claireville Drive, Toronto, Ontario and 3408 - 76th Avenue NW, Edmonton, Alberta. The Edmonton-Toronto Portfolio is currently 100% leased to a high quality national tenant under 10 year, triple net leases.  The purchase price for the Edmonton-Toronto Portfolio was $6,500,000, representing a 6.71% going-in capitalization rate.  PIRET acquired the Edmonton-Toronto Portfolio using proceeds from its bought deal financing that closed on December 12, 2012 and intends to obtain new mortgage financing that represents approximately 60% of the total purchase price at an interest rate of no more than 3.75% per annum.

Kevan Gorrie, President of PIRET commented, "We are very pleased to be ending 2012 by completing the acquisition of several high quality industrial properties located in key markets in Ontario and Western Canada. In particular, the Richmond properties, located in the extremely desirable and high-barrier-to-entry market of Vancouver, represent a very high profile acquisition for PIRET."

After completing these acquisitions, PIRET's portfolio will total 87 properties with GLA of approximately 6.9 million square feet and total land holdings of approximately 495 acres.

The REIT's 2012 acquisitions are summarized below:
 
Address Municipality and
Province
# of
Properties
GLA
(sf)
Price
($million)
Going-In
Cap Rate
Occupancy
7830 Vantage Way Delta, BC 1 46,300 $    4.45 6.50% 100%
925 - 931 Brock Road Pickering, ON 2 325,680 22.12 8.00% 93%
1345 Redwood Avenue Winnipeg, MB 1 112,340 9.70 7.76% 100%
2440 Winston Park Drive Oakville, ON 1 94,988 10.56 6.75% 100%
230 Barmac Drive North York, ON 1 118,225 7.28 6.50% 100%
515 Welham Road Barrie, ON 1 45,217 2.67 8.00% 100%
12155 - 15th Street Edmonton, AB 1 138,964 16.83 8.00% 100%
2030 Notre Dame Avenue Winnipeg, MB 1 108,238 8.10 7.68% 100%
6800 Rexwood Road Mississauga, ON 1 101,039 8.25 6.74% 100%
15 Turbo Drive Edmonton, AB 1 27,071 4.25 7.96% 100%
Western Portfolio Alberta & BC 5 237,141 48.00 7.10% 100%
Calgary Properties Calgary, AB 2 72,549 8.65 7.30% 100%
Ontario Portfolio Vaughan, Burlington,
Kitchener, ON
4 462,561 34.90 6.85% 100%
Richmond Portfolio Richmond, BC 2 927,351 102.46 6.16% 100%
Edmonton - Toronto Portfolio Alberta and Ontario 2 52,782 6.5 6.71% 100%
    26 2,870,446 $ 294.72 6.87% 99%

Corporate Update

The TSX has advised PIRET that, in accordance with its policies, the TSX has deferred  its consideration of the acceptance for filing of the unitholders' rights plan (the "Plan") until such time as the unitholders of the Trust have approved the Plan.  The TSX automatically defers acceptance if unitholder approval is not sought within six months of adoption of the Plan.  In the interim, the Plan will remain in full effect in accordance with its terms.

As described in PIRET's news release dated October 1, 2012, the Plan is designed to ensure the fair treatment of unitholders in any transaction involving a change of control of PIRET and will provide the board of trustees and unitholders with sufficient time to properly consider any take-over bid made for the Trust and to allow enough time for competing bids and alternate proposal to emerge.  A copy of the Plan will be available under the Trust's profile on SEDAR at www.sedar.com.

About Pure Industrial Real Estate Trust

PIRET is an unincorporated, open-ended investment trust established for the purposes of acquiring, owning and operating a diversified portfolio of income-producing industrial properties in primary markets across Canada.  PIRET focuses exclusively on investing in industrial properties and is the largest internally managed REIT in Canada that offers investors exclusive exposure to Canada's industrial asset class.

Additional information about PIRET is available at www.piret.ca or www.sedar.com.

Forward-Looking Information:

Certain statements contained in this news release may constitute forward-looking statements. Forward-looking statements are often, but not always, identified by the use of words such as "anticipate", "plan", "expect", "may", "will", "intend", "should", and similar expressions. These statements involve known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such forward-looking statements. The forward-looking statements contained in this news release are based on certain key expectations and assumptions made by PIRET, including: PIRET acquired the Edmonton-Toronto Portfolio using proceeds from its bought deal financing that closed on December 12, 2012 and intends to obtain new mortgage financing that represents approximately 60% of the total purchase price at an interest rate of no more than 3.75% per annum.

Although PIRET believes that the expectations and assumptions on which the forward-looking statements are based are reasonable, undue reliance should not be placed on the forward-looking statements because PIRET can give no assurance that they will prove to be correct. Since forward-looking statements address future events and conditions, by their very nature they involve inherent risks and uncertainties. Actual results could differ materially from those currently anticipated due to a number of factors and risks. These include, but are not limited to, the failure to satisfy the conditions to complete the acquisition, the inability to obtain mortgage financing on expected terms, competitive factors in the industries in which PIRET operates, prevailing economic conditions, and other factors, many of which are beyond the control of PIRET.

The forward-looking statements contained in this news release represent PIRET's expectations as of the date hereof, and are subject to change after such date. PIRET disclaims any intention or obligation to update or revise any forward-looking statements whether as a result of new information, future events or otherwise, except as required under applicable securities regulations.

The Toronto Stock Exchange has not reviewed nor approved the contents of this press release and does not accept responsibility for the adequacy or accuracy of this press release.

 

 

Image with caption: "Richmond Portfolio:  Hopewell Distribution Centre (Building I), Richmond, BC (CNW Group/Pure Industrial Real Estate Trust (PIRET))". Image available at: http://photos.newswire.ca/images/download/20121220_C2948_PHOTO_EN_22172.jpg

SOURCE: Pure Industrial Real Estate Trust (PIRET)

For further information:

Andrew Greig,
Director of Investor Relations

Pure Industrial Real Estate Trust
Suite 910, 925 West Georgia Street
Vancouver, BC  V6C 3L2
Phone: (604) 681-5959 or (888) 681-5959
E-mail: agreig@piret.ca

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