QUEBEC CITY, Oct. 2 /CNW Telbec/ - Cominar Real Estate Investment Trust
("Cominar") (TSX: CUF.UN) announced today the acquisition of the 24-storey
Class "A" office tower located at 2001 McGill College in Montreal for a total
consideration of $165 million. Cominar has entered into an agreement with a
Canadian insurance company for a long-term secured financing of approximately
$97.2 million at an interest rate of 5.4%. The balance of the purchase price
will be paid by drawing on Cominar's current credit facilities.
The property is located on the east side of McGill College Avenue and on
the corner of Sherbrooke Street West, a well-known business address in the
core of Montreal's business district.
The property is comprised of a 528,532 square foot, 24-storey office
building connected to 4-storey historic greystones along Sherbrooke Street. It
has a current occupancy of 90%. Its highly diversified tenant roaster is
comprised of many investment grade and international corporations. The tenant
base includes more than 24 clients, with the largest tenant occupying
approximately 13% of the building's leasable space. The average remaining
lease term is over six years.
"We are extremely pleased with this major acquisition, which brings the
value of Cominar's assets to approximately $1.7 billion. We had been actively
looking at acquiring an office property in Montreal to substitute for our
office property located at 300 Viger in Montreal since the Centre hospitalier
de l'Université de Montréal (CHUM) initiated an expropriation process in June
2006," said Michel Dallaire, President and Chief Executive Officer. He added:
"The initial capitalization rate associated with this acquisition (6.3%) is
immediately accretive and should be assessed taking into consideration the
definitive indemnity that Cominar expects to receive from the CHUM. In this
context, the acquisition of 2001 McGill College, a Class A office property, is
an opportunity for Cominar to enhance its portfolio while maintaining its
strategy of accretively acquiring high-quality properties in its markets.
Finally, we are also very pleased with the financing we were able to obtain to
fund this acquisition. It attests to our ability to raise funds at attractive
rates in order to finance our growth, even in tougher market conditions."
The completion of the acquisition is subject to normal course property
registrations expected in the next few days.
Portfolio as at October 2, 2008
Cominar is the largest commercial property owner and manager in the
Province of Québec. Cominar owns a real estate portfolio of 213 high quality
properties, consisting of 37 office, 39 retail and 137 industrial and
mixed-use buildings that cover a total area of over 18.1 million square feet
in the Greater Quebec City, Montreal and Ottawa areas. Cominar's objectives
are to deliver growing cash distributions to its unitholders and to maximize
unitholder value through proactive management and the growth of its portfolio.
This press release may contain forward-looking statements with respect to
Cominar Real Estate Investment Trust and its operations, strategy, financial
performance and condition. These statements generally can be identified by use
of forward looking words such as "may", "will", "expect", "estimate",
"anticipate", "intends", "believe" or "continue" or the negative thereof or
similar variations. The actual results and performance of Cominar Real Estate
Investment Trust could differ materially from those expressed or implied by
such statements. Such statements are qualified in their entirety by the
inherent risks and uncertainties surrounding future expectations. Some
important factors that could cause actual results to differ materially from
expectations include, among other things, general economic and market factors,
competition, changes in government regulation and the factors described under
"Risk Factors" in the annual information form of Cominar Real Estate
Investment Trust. The cautionary statements qualify all forward-looking
statements attributable to Cominar Real Estate Investment Trust and persons
acting on its behalf. Unless otherwise stated, all forward-looking statements
speak only as of the date of this press release and Cominar Real Estate
Investment Trust has no obligation to update such statements.
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For further information:
For further information: Mr. Michel Dallaire, P.Eng., President and
Chief Executive Officer, Cominar Real Estate Investment Trust, (418) 681-8151