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TORONTO, Nov. 23, 2011 /CNW/ - C2C Industrial Properties Inc. (the "Company" or "C2C") (CCH: TSX-V) today announced that its wholly-named subsidiary, C2C
Industrial Properties Ltd., has completed the acquisition (the "Acquisition") of a portfolio of income producing industrial properties (the "Portfolio") located in Eastern Canada.
The Portfolio consists of eight multi-tenant industrial buildings
located in Dartmouth, Nova Scotia totaling more than 600,000 square
feet. The Portfolio has a diversity of tenants and unit sizes. The
Portfolio is 97% leased and was acquired at an approximate
capitalization rate of 7.80%.
The Halifax area was targeted because of its stable economy,
demographics and commercial real estate market. As a result of
long-term stability, Halifax has become a reliable market known for
consistent gains and lower risk. Halifax is reported to have the second
lowest vacancy rate of any primary market in Canada. The recent
announcement that Halifax has been awarded the ship building contract
for the Canadian Navy, a contract reported to be worth $25 billion over
the next 20 years, is testament to both the stability and growth
potential of this market.
The Portfolio provides scale and access to almost 90 existing tenants,
providing the Corporation with a platform and cash flow to source and
execute on growth investments in the Halifax market and elsewhere.
The aggregate purchase price for the Portfolio was approximately
$56,000,000, exclusive of closing costs. The Corporation financed the
purchase price of the Portfolio by means of first mortgage financing in
the aggregate principal amount of approximately $38,550,000 and the
balance by means of a bridge loan.
The Corporation intends to complete one or more private placements, the
proceeds of which will be used to repay all or a portion of the
principal and interest owing pursuant to the bridge loan and for
working capital purposes.
About C2C Industrial Properties Inc.
C2C is a real property company that recently completed its Qualifying
Transaction on the TSX Venture Exchange. C2C's principal objective is
to become a real estate corporation specializing in acquiring, owning
and operating industrial properties across Canada. More information
about C2C (CCH: TSX-V) is available at www.sedar.com.
Forward Looking Statements
This document contains forward-looking statements relating to C2C and
the environment in which it operates and its strategy, action plans and
investments, which may involve estimates, forecasts and projections.
These statements are not guarantees of future performance and involve
risks and uncertainties that are difficult to predict and/or are beyond
C2C's control. A number of important factors could cause actual
outcomes and results to differ materially from those expressed in these
forward-looking statements. These factors include those set forth in
this press release and other public filings. Consequently, readers
should not place any undue reliance on such forward-looking statements.
These forward-looking statements are made as of the date of this press
release. C2C is under no obligation to update any forward-looking
statements contained herein should material facts change due to new
information, future events or other factors. All forward-looking
statements attributable to C2C are expressly qualified by these
The TSX Venture Exchange has neither approved nor disapproved the
contents of this press release.
Neither the TSX Venture Exchange nor its Regulation Services Provider
(as that term is defined in the policies of the TSX Venture Exchange)
accepts responsibility for the adequacy or accuracy of this press
SOURCE C2C Industrial Properties Inc.
For further information:
C2C Industrial Properties Inc.