TORONTO, Feb. 23, 2016 /CNW/ - Firm Capital Property Trust ("FCPT" or the "Trust") (TSXV : FCD.UN) is pleased to announce that it is has closed the sale of its interest in two retail properties totaling 19,330 sq. ft. and closed a $23.7 million new first mortgage on the 100% interest in a co-owned retail portfolio.
The properties sold were a 10,542 sq. ft. retail strip centre in Ontario that sold for gross proceeds of $3,400,000 and a 8,788 sq. ft. land leased retail property in British Columbia with approximately seven years remaining on the land lease for gross proceeds of $557,000. The Trust's share of the gross proceeds is approximately $2.8 million. The properties were unencumbered at the time of the sale and the proceeds will be used to fund future acquisitions. The transactions represent a one-time gain on Adjusted Funds from Operations ("AFFO") after costs of approximately $0.07 per trust unit.
The Trust entered in a new five year $23.7 million floating rate mortgage that was swapped to a fixed rate of 2.92% for the term of the mortgage. The Trust's portion of the new financing increased the cash available to fund future acquisitions by $4.7 million. The refinancing is approximately $0.01 per unit accretive to AFFO before the deployment of the excess cash.
The Trust currently has cash resources of approximately $11.4 million and the full $8.0 million available on its revolving credit facility to fund future acquisitions and development.
Further information about the Trust can be found by selecting the Firm Capital Property Trust link at www.firmcapital.com.
ABOUT FIRM CAPITAL PROPERTY TRUST
Firm Capital Property Trust is focused on creating long-term value for Unitholders, through capital preservation and disciplined investing to achieve stable distributable income. In partnership with management and industry leaders, The Trust's plan is to co-own a diversified property portfolio of multi-residential, flex industrial, net lease convenience retail, and core service provider professional space. In addition to stand alone accretive acquisitions, the Trust will make joint acquisitions with strong financial partners and acquisitions of partial interests from existing ownership groups, in a manner that provides liquidity to those selling owners and professional management for those remaining as partners.
FORWARD LOOKING INFORMATION
This press release may contain forward-looking statements. In some cases, forward-looking statements can be identified by the use of words such as "may", "will", "should", "expect", "plan", "anticipate", "believe", "estimate", "predict", "potential", "continue", and by discussions of strategies that involve risks and uncertainties. The forward-looking statements are based on certain key expectations and assumptions made by the Trust regarding, among other things, the use of the net proceeds from the offering. By their nature, forward-looking statements involve numerous assumptions, inherent risks and uncertainties, both general and specific, that contribute to the possibility that the predictions, forecasts, projections and various future events will not occur. Although management of the Trust believes that the expectations reflected in the forward-looking statements are reasonable, there can be no assurance that future results, levels of activity, performance or achievements will occur as anticipated. Neither the Trust nor any other person assumes responsibility for the accuracy and completeness of any forward-looking statements, and no one has any obligation to update or revise any forward-looking statement, whether as a result of new information, future events or such other factors which affect this information, except as required by law.
This press release shall not constitute an offer to sell or the solicitation of an offer to buy, which may be made only by means of a prospectus, nor shall there be any sale of the Units in any state, province or other jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under securities laws of any such state, province or other jurisdiction. The Units have not been, and will not be registered under the U.S. Securities Act of 1933, as amended, and may not be offered, sold or delivered in the United States absent registration or an application for exemption from the registration requirements of U.S. securities laws.
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 release.
SOURCE Firm Capital Property Trust
For further information: Robert McKee, President & Chief Executive Officer, (416) 635-0221; Sandy Poklar, Chief Financial Officer, (416) 635-0221