TORONTO, May 8, 2013 /CNW/ - Granite Real Estate Investment Trust ("Granite") (TSX: GRT.UN / NYSE: GRP.U) announced today its agreement to acquire a majority interest in one
income producing property located in Portland, Oregon and its
acquisition of a majority interest in two development sites located in
Louisville, Kentucky and Bethel, Pennsylvania. Granite's portion of
the funding for these acquisitions is a combination of its existing
line of credit, property-specific mortgage and construction financing
and cash on hand. The completion of these acquisitions and the
associated debt financing is consistent with Granite's strategic
initiatives to diversify its real estate portfolio and prudently
leverage its balance sheet. Property specific details on each of the
acquisitions are set out below.
18201 NE Portal Way, Portland Oregon is a 264,984 square foot Class "A" multi-tenant logistics /warehouse
facility constructed in 2008. The property will be acquired at a total
cost of approximately US$21 million, with an equity ownership split
between Granite (95%) and Dermody Properties (5%). The property is well
located within the East Columbia submarket, 5 miles east of Portland
International Airport, 15 miles from the Port of Portland, with close
proximity to major arterial interstate routes (I-84 East-West, I-205
North-South, and I-5 North-South). The property is 100% leased to four
tenants with a weighted average lease term of 4.8 years. The
acquisition is subject to customary closing conditions and is scheduled
to close on or before May 15, 2013.
825 Conestoga Parkway, Louisville Kentucky is a 35.9 acre site located at Settlers Point Business Park in
Louisville, Kentucky. The property is well located within the Bullitt
County submarket, 15 miles south of Louisville city center, and 5 miles
south-west of the Louisville International Airport. The site is
earmarked for a proposed development which will include a 624,000
square foot Class "A", cross-docked, logistics/warehouse facility, and
will be designed to allow for up to four separate users. The site is
fully entitled - zoned light industrial and is pad-ready - allowing
construction to begin upon building permit issuance. The project is
proposed to be developed on a speculative or inventory basis at an
estimated all-in cost (including land and building) of approximately
US$26.8 million. Equity ownership in the project will be through a
development joint venture between Granite (90%) and Dermody Properties
(10%). To date the land has been acquired for a purchase price of
Berks Park 78, Bethel, Pennsylvania ("PA") is an 89.2 acre site located on the western side of Berks Park 78 in
Bethel Township, PA. The site is fully improved and located within a
high quality business park approximately 125 miles from New York City,
New York and 85 miles from Philadelphia, PA off Exit 13 of I-78, 13
miles east of the I-81/I-78 intersection. The property is fully
entitled and zoned for 750,000 square feet of logistics/warehouse uses.
The site was acquired for a purchase price of US$7.8 million, and
equity ownership in the project will be through a development joint
venture between Granite (90%) and Dermody Properties (10%). The
acquisition was funded on a land-only basis and will be held in
inventory for future build-to-suit opportunities and/or future
Additional details on the acquisitions are available on our website at www.granitereit.com.
Granite is a Canadian-based REIT engaged in the ownership and management
of predominantly industrial properties in North America and Europe.
Granite owns approximately 29 million square feet in 106 rental income
properties. Our tenant base currently includes Magna International Inc.
and its operating subsidiaries as our largest tenants, together with
tenants from other industries.
ABOUT DERMODY PROPERTIES
Dermody Properties is a privately held national industrial real estate
development group, founded and headquartered in Reno, NV, with regional
offices in Phoenix, AZ, Portland, OR, Philadelphia, PA and Chicago, IL.
Over its 50-year history, the company has developed and leased more
than 35 million square feet of high quality industrial/distribution
facilities throughout the U.S., serving the distribution space needs of
Fortune 500 companies and other large customers. To learn more about
Dermody Properties, visit www.Dermody.com.
Copies of financial data and other publicly filed documents are
available through the internet on Canadian Securities Administrators'
Systems for Electronic Document Analysis and Retrieval (SEDAR) which
can be accessed at www.sedar.com and on the United States Securities and Exchange Commission's
Electronic Data Gathering, Analysis and Retrieval System (EDGAR) which
can be accessed at www.sec.gov. For further information, please see our website at www.granitereit.com or contact Tom Heslip, Chief Executive Officer, at 647-925-7539 or
Michael Forsayeth, Chief Financial Officer, at 647-925-7600.
This press release may contain statements that, to the extent they are
not recitations of historical fact, constitute ''forward-looking
statements'' within the meaning of applicable securities legislation,
including the United States Securities Act of 1933 and the United
States Securities Exchange Act of 1934. Forward-looking statements may
include, among others, statements regarding Granite's future plans,
goals, strategies, intentions, beliefs, estimates, costs, objectives,
economic performance or expectations, or the assumptions underlying any
of the foregoing. Words such as ''may'', ''would'', ''could'',
''will'', ''likely'', ''expect'', ''anticipate'', ''believe'',
''intend'', ''plan'', ''forecast'', ''project'', ''estimate'' and
similar expressions are used to identify forward-looking statements.
Forward-looking statements should not be read as guarantees of future
events, performance or results and will not necessarily be accurate
indications of whether or the times at or by which such future
performance will be achieved. Undue reliance should not be placed on
such statements. Forward-looking statements are based on information
available at the time and/or management's good faith assumptions and
analyses made in light of our perception of historical trends, current
conditions and expected future developments, as well as other factors
we believe are appropriate in the circumstances, and are subject to
known and unknown risks, uncertainties and other unpredictable factors,
many of which are beyond Granite's control, that could cause actual
events or results to differ materially from such forward-looking
statements. Important factors that could cause such differences
include, but are not limited to the risks set forth in the ''Risk
Factors'' section in Granite REIT's Annual Information Form for 2012,
filed on SEDAR at www.sedar.com and on EDGAR at www.sec.gov, which investors are strongly advised to review. The ''Risk Factors''
sections also contain information about the material factors or
assumptions underlying such forward-looking statements. Forward-looking
statements speak only as of the date the statements were made and
unless otherwise required by applicable securities laws, Granite
expressly disclaims any intention and undertakes no obligation to
update or revise any forward-looking statements contained in this press
release to reflect subsequent information, events or circumstances or
SOURCE: Granite Real Estate Investment Trust
For further information:
Please see our website at www.granitereit.com or contact Tom Heslip, Chief Executive Officer, at 647-925-7539 or Michael Forsayeth, Chief Financial Officer, at 647-925-7600.