C2C Industrial Properties Inc. Announces Terms Of New Portfolio Acquisition, Related Non-Broker Private Placement And Appointment of New Independent Director.

/NOT FOR DISTRIBUTION TO UNITED STATES NEWS WIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES/

TORONTO, Jan. 30, 2012 /CNW/ - C2C Industrial Properties Inc. (the "Company" or "C2C") (CCH: TSX-V) today announced that its wholly-owned subsidiary, C2C Industrial Properties Ltd., has waived conditions on a portfolio acquisition (the "Acquisition") of income producing industrial properties (the "Portfolio") located in the Greater Toronto Area ("GTA").  The Acquisition remains conditional upon completion of a non-brokered private placement (the "Private Placement") described below.  A summary of the transaction is as follows:

Acquisition

The Portfolio consists of four multi-tenant industrial buildings located in Oakville, Etobicoke, Richmond Hill and Scarborough, Ontario totaling 487,848 square feet. The Portfolio is 100% leased to a diverse mix of tenants with varying unit sizes. The Portfolio is being acquired at a weighted average going-in capitalization rate of 7.0%, before deductions for deferred capital repairs.

The purchase price for the Portfolio is approximately $37,600,000 subject to usual real estate adjustments.  C2C will finance the purchase price through the assumption of the existing first mortgage in the approximate principal amount of $22,300,000, a credit facility from a Schedule I Canadian bank in the approximate principal amount of $7,000,000 and a private placement in the amount of approximately $9,000,000.

The GTA is a target market for the Company due to its importance within the Canadian Industrial Property Market.  The Portfolio allows C2C to acquire a sizable concentration of high quality industrial buildings in Canada's premier industrial market, the fourth largest in North America.  With approximately 800 million square feet of industrial gross leasable area, the GTA comprises more than 40% of the national inventory of industrial space and provides C2C with a strong pipeline of acquisition opportunities.

Chris Ross, President of C2C, stated, "A portfolio acquisition such as this represents a unique opportunity for C2C to build size and scale.  It further demonstrates the Company's ability to leverage the relationships of its asset manager, Strathallen Capital Corp., to acquire properties in off-market transactions - and the depth of its institutional relationships."

"With the addition of the Portfolio, the Company continues to execute on its strategic plan of accretively growing the Company's portfolio in core Canadian markets. The Acquisition provides a stable cash flow and tenant base, coupled with a scalable platform for management to source and execute on growth investments within the GTA market and elsewhere."

Financing

Debt Financing

The existing first mortgage is secured on the Portfolio and is due July 1, 2017.  The mortgage will bear interest at a rate of 4.0% per annum after closing.

A credit facility is being provided by a Schedule I Canadian bank.  It will be secured by a second mortgage against the Portfolio and will be due one year from closing.  The credit facility will bear interest at a rate equal to the bankers' acceptances plus 650 basis points.

Non-Brokered Private Placement

The Private Placement will consist of a unit offering in the aggregate amount of $9,000,000 consisting of shares and warrants.  Each unit will have a subscription price of $0.17 and consist of one common share and a fraction of a share purchase warrant.  Each whole warrant will entitle the holder to purchase one common share of C2C for a term of three years.  The exercise price of the warrants is to be determined in accordance with the policies of the TSX Venture Exchange Inc.

Election of New Director - Moray Tawse

C2C is also pleased to announce that Mr. Moray Tawse has been appointed to its board of directors and will serve as Chairman of the Investment Committee.

Moray Tawse is the co-founder of First National Financial Corp. (FN-TSX), one of Canada's largest residential and commercial mortgage originators with more than $59 billion dollars in mortgages under administration. With over 30 years of experience in the real estate finance industry, Moray is one of Canada's leading experts on commercial real estate.  Moray also brings significant capital markets experience having taking First National public in 2006.

"We are extremely pleased to have Moray join the board of C2C.  His depth of experience and knowledge in the real estate capital markets will provide valuable guidance and stewardship for the anticipated growth of C2C, as a property investment company focused on the industrial sector," said Brian Spence, Chairman of the Corporation.

Since completing its Qualifying Transaction in May 2011 and following the successful closing of the Acquisition, C2C will have grown its asset base from 1 property of 23,500 square feet to 14 properties totalling approximately 1,200,000 million square feet.

About C2C Industrial Properties Inc.

C2C is a real property investment company, which recently completed its Qualifying Transaction on the TSX Venture Exchange. C2C's principal objective is to be a real estate investment corporation specializing in acquisition, ownership and the operation of 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 cautionary statements.

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 release.


SOURCE C2C Industrial Properties Inc.

For further information:

C2C Industrial Properties Inc.
Christopher Ross
President
(416) 646-7353
cross@c2cindustrialproperties.com

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C2C Industrial Properties Inc.

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