TORONTO, April 5 /CNW/ - (TSXV: IS.UN) InStorage Real Estate Investment
Trust (the "REIT") announced today the closing of its previously announced
acquisition of the StorageNOW portfolio of 11 high quality self-storage
properties located in Alberta, Saskatchewan and Ontario, for an aggregate
purchase price of $110.0 million.
The properties operate under the names "StorageMaxx" in Western Canada
and "StorageNOW" and "StorageONE" in Ontario. Two of the properties are
located in Alberta, at 13303 Fort Road, Edmonton and 4201 52nd Street SE,
Calgary. Three of the properties are located in Saskatchewan, at 901 1st
Avenue North, Saskatoon, 3010 11th Street West, Saskatoon, and 495 Maxwell
Crescent, Regina. The remaining six properties are located in Ontario, at 110
Bell Farm Road, Barrie, 990 Syscon Road, Burlington, 605 Alden Road, Markham,
110 Guided Court, Etobicoke, 144 Norseman Street, Etobicoke, and 120 Wicksteed
Avenue, Toronto. Collectively, the properties have a gross rentable area of
approximately 661,000 and house approximately 6,300 storage units.
The purchase price for the acquisition was satisfied with $38.5 million
in cash and $71.5 million in first mortgage financing. The purchase price
includes an income guarantee of $2.9 million which will be held in escrow.
Amounts can be drawn from escrow by the REIT on a monthly basis to the extent
of the shortfall between actual net operating income and expected net
operating income at stabilized levels of occupancy for certain properties.
InStorage Real Estate Investment Trust
The REIT is an unincorporated open-ended real estate investment trust
that invests primarily in self-storage properties and ancillary businesses
throughout Canada. Including the properties acquired today, the REIT
indirectly owns 36 self-storage properties located in Alberta, Saskatchewan
and Ontario, and is the second largest owner/operator of self storage
facilities in Canada. The completion of the acquisition described above
further solidifies the REIT's position as Canada's leading self-storage
Additional information concerning the REIT may be obtained on the REIT's
website, www.instoragereit.ca, and on the SEDAR website at www.sedar.com,
under the REIT's profile.
The TSX Venture Exchange does not accept responsibility for the adequacy
or accuracy of this release.
For further information:
For further information: InStorage Real Estate Investment Trust, T.
James Tadeson, Chief Executive Officer, Tel: (416) 867-9705