Strong Pipeline of Potential Acquisitions in Eastern Canada
MONTREAL, May 1, 2013 /CNW/ - PRO Real Estate Investment Trust
("PROREIT") (TSX VENTURE: PRV.UN) announced today that it has closed
its previously announced transactions to acquire two high quality
commercial properties in the province of Quebec. The properties, which
are in L'Ancienne Lorette and Daveluyville Quebec, will add 25,762
square feet of retail space to PROREIT's portfolio.
The total acquisition price for the two properties is $8.45 million.
The acquisitions were funded in part using the proceeds of a private
placement completed in December 2012 and a short term operating
Strong Pipeline of Potential Acquisitions
"We are establishing a foothold in Quebec and the Maritimes and have a
strong pipeline of potential acquisitions that we are focusing on to
build a portfolio of commercial and industrial real estate," said Jim
Beckerleg, President and Chief Executive Officer.
Pharmacy - L'Ancienne-Lorette - Québec
The property is located at 1670 Notre Dame Street, L'Ancienne-Lorette,
Quebec and is a one-storey free-standing Pharmaprix drug store. The
property is 100% occupied on a long-term lease until 2023. The purchase
price for the property was $7 million, excluding closing and
transaction costs. The property adds 19,000 square feet of retail space
to PROREIT's debut portfolio. The purchase price was satisfied through
the assumption of a hypothecary loan in the amount of approximately
$3.8 million, bearing interest at the rate of 5.03% per annum maturing
in March 2015 and a partial drawdown of a short term operating
Pharmacy - Daveluyville - Québec
The property is located at 449 Principale Street, Daveluyville, Québec.
It is a one-storey free-standing Familiprix drug store. The property
is 100% occupied on a long-term lease until 2026. The purchase price
for the property is $1.45 million, excluding closing and transaction
costs. The property adds 6,762 square feet of retail space to PROREIT's
debut portfolio. The purchase price was satisfied through use of a
short term operating facility.
PROREIT is an unincorporated open-ended real estate investment trust
established pursuant to a declaration of trust under the laws of the
Province of Ontario.
This news release may contain forward-looking information within the
meaning of applicable securities legislation. Forward-looking
information is based on a number of assumptions and is subject to a
number of risks and uncertainties, many of which are beyond PROREIT's
control, that could cause actual results and events to differ
materially from those that are disclosed in or implied by such
Forward-looking information contained in this press release includes,
without limitation, statements pertaining to the potential acquisitions
of PROREIT. There can be no assurance that any of the potential
acquisitions will result in a definitive agreement and, if they do,
what the terms or timing of any acquisition would be.
PROREIT's objectives and forward-looking statements are based on certain
assumptions, including that (i) PROREIT will receive financing on
favourable terms; (ii) the future level of indebtedness of PROREIT and
its future growth potential will remain consistent with PROREIT's
current expectations; (iii) there will be no changes to tax laws
adversely affecting PROREIT's financing capacity or operations; (iv)
the impact of the current economic climate and the current global
financial conditions on PROREIT's operations, including its financing
capacity and asset value, will remain consistent with PROREIT's current
expectations; (v) the performance of PROREIT's investments in Canada
will proceed on a basis consistent with PROREIT's current expectations;
and (vi) capital markets will provide PROREIT with readily available
access to equity and/or debt.
The forward-looking statements contained in this news release are
expressly qualified in their entirety by this cautionary statement. All
forward-looking statements in this press release are made as of the
date of this press release. PROREIT does not undertake to update any
such forward-looking information whether as a result of new
information, future events or otherwise.
Additional information about these assumptions and risks and
uncertainties is contained in PROREIT's filings with securities
regulatory authorities, including in the management information
circular of Taggart Capital Corp. dated February 15, 2013 under "Risk
Factors", which are available on SEDAR at www.sedar.com.
SOURCE: PRO Real Estate Investment Trust
For further information:
PRO Real Estate Investment Trust
James W. Beckerleg
President and Chief Executive Officer
PRO Real Estate Investment Trust
Gordon G. Lawlor, CA
Chief Financial Officer