TORONTO, Oct. 4, 2012 /CNW/ - KEYreit (TSX: KRE.UN) ("KEYreit") today
announced that it has closed the previously announced acquisition of
three retail properties from companies affiliated with Dundee Real
Estate Investment Trust ("Dundee REIT") for a purchase price of $16.07
million (excluding transaction costs).
The acquisition is comprised of two properties located in Charlottetown,
Prince Edward Island and one property in Halifax, Nova Scotia,
totalling 101,473 square feet of gross leasable area ("GLA"). The
property portfolio is 100% leased with an overall average lease term of
approximately four years.
The total purchase price was satisfied through the assumption of
existing mortgage debt of approximately $7.0 million bearing a weighted
average interest rate of 5.43% and net proceeds received from KEYreit's
equity offering completed in August 2012.
"This acquisition fits perfectly with KEYreit's investment strategy:
"small box" retail, located in solid markets, with over 84% of GLA
leased to national or major retail tenants," said Kevin Salsberg, Chief
Operating Officer of the REIT. "With tenants such as Bed Bath & Beyond,
Staples and Lawton's Drugs, we continue to strengthen and diversify
KEYreit's tenant base."
Including this acquisition, KEYreit now owns a portfolio of 232 retail
properties and more than 1.2 million square feet of retail space in
nine provinces across Canada.
KEYreit (TSX: KRE.UN) (formerly Scott's Real Estate Investment Trust) is
Canada's premier small-box retail property owner with 232 properties in
nine provinces across Canada. KEYreit's properties are well located and
geographically diverse across Canada with the majority of all
properties containing long-term quadruple net leases.
To find out more about KEYreit (TSX: KRE.UN), visit our website at www.keyreit.com.
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