Nobel REIT announces the acquisition of a property in Montreal and July distribution
MONTREAL, July 18, 2014 /CNW Telbec/ - (TSXV: NEL.UN) Nobel Real Estate Investment Trust ("Nobel REIT" or the "REIT") is pleased to announce that it has acquired an industrial property comprising 60,786 square feet of gross leasable area, located at 6810 boulevard Des Grandes Prairies in the borough of Saint-Léonard of the city of Montreal, Quebec, for a purchase price of $9,700,000, excluding acquisition costs. The occupancy of the property is 100% and the current lease of Alasko Foods, the single-tenant, expires in June 2022.
This acquisition was financed by a loan in the amount of $6,300,000, secured by a first ranking hypothec on the acquired property, with the balance of the purchase price satisfied with the net proceeds of the REIT's recent private placement completed on July 10, 2014 (the "Offering"). The secured loan bears interest at a fixed rate of 3.79% for a five-year term. The effective capitalization rate of the acquisition is 7.36%.
Nobel REIT is also pleased to announce today a cash distribution of $0.0000509 per trust unit of the REIT for the month of July 2014, as per its new distribution policy that was announced in a press release dated December 30, 2013, which provided for a fixed monthly amount to be distributed to all unitholders. The decrease of the amount paid per unit is due to the increase in the number of issued and outstanding units of the REIT resulting from the recently completed Offering. The distribution will be payable on August 15, 2014 to unitholders of record as at July 31, 2014.
About Nobel REIT
Nobel REIT is a recently created unincorporated open-ended real estate investment trust governed by the laws of the Province of Québec. Nobel REIT has been created for the purpose of acquiring and owning income producing properties. The REIT will focus on acquiring commercial retail, mixed-used retail, and industrial and suburban office properties in the primary and secondary markets in the Province of Québec. Nobel REIT currently owns three properties located in Québec, comprising 132,533 square feet of gross leasable area.
Disclaimer - Safe Harbour Forward-Looking Statements
Forward-looking statements contained in this press release involve known and unknown risks, uncertainties and other factors that may cause actual results, performance and achievements of Nobel REIT to be materially different from any future results, performance or achievements expressed or implied by the said forward-looking statements.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
SOURCE Nobel Real Estate Investment TrustFor further information:
please contact: Louis Lemire, CPA, CA, Chief Financial Officer, at (450) 655-4338.