Pure Industrial Real Estate Trust announces successful closing of eight industrial properties for US$135.5 million

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VANCOUVER, Aug. 5, 2014 /CNW/ - Pure Industrial Real Estate Trust ("PIRET") (TSX: AAR.UN) today announced the successful closing of eight industrial properties (the "Portfolio") for a total purchase price of US$135.5 million, representing a going-in cap rate of approximately 7.14%. The Portfolio comprises part of the 11 property portfolio, the purchase of which PIRET previously announced on June 18, 2014.  PIRET expects to complete the purchase of the balance of the portfolio by the end of August, upon the satisfaction of remaining purchase conditions.

The Portfolio is comprised of approximately 1.39 million square feet of gross leasable area ("GLA") located in 6 major U.S. markets. The Portfolio has a weighted average remaining lease term of 9.8 years and an average building age of only 3.5 years.

PIRET funded the acquisition using cash from its public offering that closed on June 27, 2014.  Details of the portfolio announced on June 18, 2014, including the properties pending purchase, are as follows:

City / State

GLA (sq. ft)

Year Built

Lease Expiration

Status

Income Producing Properties

City of Industry, CA

211,495

2007

Jun-2022

Closed

West Palm Beach, FL

119,165

2007

May-2025

Closed

Newton, NC

141,432

2010

Aug-2023

Closed

Subtotal

472,092




Properties Under Development

Rock Island, IL

189,926

Nov 2014

Oct-2024

Closed

Wheeling, IL

147,082

Aug 2014

Jul-2024

Closed

Baton Rouge, LA

175,374

Feb 2015

Jan-2025

Closed

Austin, TX

199,865

Jan 2015

Jan-2025

Closed

San Antonio, TX

202,763

Feb 2015

Jan-2025

Closed

Subtotal

915,010




Total Closed

1,387,102




Income producing properties pending acquisition

Barrington, NJ

196,227(1)

2006

Jul-2025

Pending

Dover, NJ

171,907

2010

Jun-2024

Pending

Montreal, QC

106,263

2007

Aug-2024

Pending


474,397




Note:


(1)      

Represents the current GLA. The property will be expanded to comprise 259,227 square feet of GLA. The expansion is expected to be completed in 2015.

 

After completing the acquisition of the Portfolio, PIRET's portfolio will be comprised of 167 properties representing approximately 15.3 million square feet of GLA.

In connection with the purchase, PIRET advanced a loan of US$43,992,464 to the vendor, which loan is secured by mortgages of the two New Jersey properties, the purchase of which is pending.  The loan bears interest at the rate of 7.0% per annum and will be repaid by the vendor to PIRET upon the completion of the sale of the two New Jersey properties.

PIRET's Management will provide a detailed update regarding the acquisition during the Q2 2014 earnings call on Thursday, August 7, 2014.

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.

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

TSX – AAR.UN

Forward-Looking Information:

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: (i) PIRET expects to complete the purchase of the balance of the portfolio by the end of August, upon the satisfaction of remaining purchase conditions, and (ii) the expansion of the property in Barrington, NJ is expected to be completed in 2015. 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, and the vendor's ability to complete the expansion as currently planned.

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 NOR APPROVED THE CONTENTS OF THIS PRESS RELEASE AND DOES NOT ACCEPT RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS PRESS 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: agreig@piret.ca