Pure Industrial Real Estate Trust Announces Closing of $178.2 Million Bought Deal And Announces Sale Of An Industrial Property
VANCOUVER, June 27, 2014 /CNW/ - Pure Industrial Real Estate Trust ("PIRET") (TSX: AAR.UN) today announced the closing of its previously announced public offering (the "Offering") of 38,755,000 Class A trust units (each, a "Unit"), inclusive of 5,055,000 Units issued pursuant to the exercise in full of the over-allotment option, on a bought deal basis, at a price of $4.60 per Unit for total gross proceeds of $178,273,000. The Offering was conducted through a syndicate of underwriters co-led by BMO Capital Markets, Canaccord Genuity Corp., and RBC Capital Markets, on their own behalf and on behalf of CIBC World Markets Inc., National Bank Financial Inc., Scotia Capital Inc., Dundee Securities Ltd., GMP Securities L.P., Raymond James Ltd. and Desjardins Securities Inc.
PIRET intends to use the net proceeds from the Offering to partially fund the acquisition of 11 light industrial properties (the "Portfolio"), for repayment of indebtedness and for general working capital purposes. The Portfolio consists of 10 properties located in the U.S. in major strategic markets within the tenant's national distribution network and one property located in Montreal, Canada, as described in greater detail under the heading "Use of Proceeds" in PIRET's prospectus supplement dated June 20, 2014, available on SEDAR at www.sedar.com.
PIRET's Units are listed on the Toronto Stock Exchange under the symbol AAR.UN. PIRET now has 189,410,770 Units issued and outstanding.
PIRET today announced the successful sale of 1625 Steeles Avenue East in Brampton, Ontario for $3.1 million.
The property is a multi-tenant industrial building that was constructed in 1985 with a total rentable area of 25,625 square feet and a clear height of 18 feet. The building was purchased as part of a larger portfolio deal in June 2011 for $2.6 million.
The sale of this asset reflects PIRET's commitment to creating value for its unitholders through selective disposition of non-core assets.
About Pure Industrial Real Estate Trust
PIRET is an unincorporated, open-ended investment trust that owns and operates a diversified portfolio of income-producing industrial properties in leading markets. PIRET is an internally managed REIT that focuses exclusively on investing in industrial properties.
TSX – AAR.UN
Certain statements contained in this press 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. Forward-looking statements in this news release include that PIRET intends to use the net proceeds from the Offering to partially fund acquisitions, for repayment of indetedness and for general working capital purposes. The forward-looking statements contained in this news release are based on certain key expectations and assumptions made by PIRET, including: expectations and assumptions concerning receipt of required regulatory approvals and the satisfaction of other conditions to the completion of the property acquistions.
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 obtain necessary regulatory approvals or satisfy the conditions to closing the property acquisitions, competitive factors in the industries in which PIRET operates, prevailing economic conditions, and other factors, many of which are beyond the control of the PIRET.
The forward-looking statements contained in this press 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 AND DOES NOT ACCEPT RESPONSIBILITY FOR THE ADEQUACY OR THE ACCURACY OF THIS RELEASE.
SOURCE Pure Industrial Real Estate Trust (PIRET)For further information: Andrew Greig, Director of Investor Relations, Suite 910, 925 West Georgia Street, Vancouver, BC V6C 3L2, Phone: (604) 398-2836 or (888) 681-5959, E-mail: email@example.com