Pure Industrial Real Estate Trust announces $10 million follow on offering of Trust Units



    VANCOUVER, Nov. 19 /CNW/ - Pure Industrial Real Estate Trust ("PIRET")
(TSX-V:AAR.UN) announced today that it has filed a preliminary prospectus with
securities commissions and other similar regulatory authorities in each of the
provinces of Canada in connection with a follow-on offering of units of PIRET
(the "Trust Units") for total gross proceeds of $10,000,000 (the "Base
Offering"). The Trust Units are being offered through a syndicate of agents
led by Dundee Securities Corporation and RBC Capital Markets, and includes,
Raymond James Ltd., BMO Capital Markets Inc., Blackmont Capital Inc., Bieber
Securities Inc., Canaccord Capital Corporation, MGI Securities Inc. and Sora
Group Wealth Advisors Inc. (the "Agents").
    The offering price for the Trust Units under the Base Offering will be
determined in the context of the market after a marketing period to
institutional and individual investors during which the highlights of PIRET's
recently announced acquisitions will be communicated.
    PIRET has also granted the Agents an over-allotment option to purchase up
to an additional 15% of the Base Offering for a period of up to 30 days after
closing of the offering. If the over-allotment option is exercised in full,
the total gross proceeds to PIRET will increase to $11,500,000.
    PIRET intends to use the net proceeds of this offering to complete, and
to partially fund, the eight acquisitions announced since October 15, 2007.
Combined, the new acquisitions will add 343,537 square feet of Gross Leasable
Area ("GLA") to PIRET's existing portfolio. PIRET believes that the addition
of these acquisitions will be immediately accretive to cash flow (on a per
unit basis) while further diversifying PIRET's quality tenant base. The
aggregate purchase price is approximately $29,500,000 which PIRET intends to
fund with a combination of cash on hand, new mortgage debt and the net
proceeds from the offering. The remainder of the proceeds, if any, will be
used for general trust purposes.

    
    Recently Announced Acquisitions
    -------------------------------

    -------------------------------------------------------------------------
    Property           Purchase      GLA                   Annual     Lease
    Address            Price        (Sq. Ft) Tenant        Base Rent  Expiry
    -------------------------------------------------------------------------
    4907 - 32nd                              Tornado
     Street SE                               Technologies
     Calgary, AB       $3,900,000    19,534  Inc.          $350,000     2012
    -------------------------------------------------------------------------
    130 Harry                                Eurospec
     Walker Place                            Manufacturing
     Newmarket, ON     $6,900,000    87,451  Inc.          $520,333     2019
    -------------------------------------------------------------------------
    2705-2737                                Shanahan's
     57th Ave. SE                            Limited
     Calgary, AB       $8,200,000   108,800  Partnership   $571,200     2020
    -------------------------------------------------------------------------
                                             Shanahan's
    2808 - 58th Ave.                         Limited
    SE Calgary, AB     $4,800,000    48,220  Partnership   $337,540     2012
    -------------------------------------------------------------------------
                                             Shanahan's
    16295 - 132nd Ave.                       Limited
     Edmonton, AB      $3,600,000    40,147  Partnership   $250,919     2012
    -------------------------------------------------------------------------
    509 - 44th                               Shanahan's
     Street East                             Limited
     Saskatoon, SK     $2,100,000(1) 11,100  Partnership    $39,960     2012
    ------------------              -----------------------------------------
                                             Shanahan's
    225 Quebec Street                        Limited
     Regina, SK                       8,100  Partnership    $40,014     2012
    ------------------              -----------------------------------------
                                             Shanahan's
    90 Park Lane                             Limited
     Winnipeg, MN                    20,185  Partnership    $89,218     2012
    -------------------------------------------------------------------------
    (1) The total purchase price payable for 509 - 44th Street East,
        225 Quebec Street and 90 Park Lane is $2,100,000
    -------------------------------------------------------------------------
    

    Detailed information on each announced acquisition can be found in the
press release section of our website (www.piret.ca) or in the preliminary
prospectus dated November 19, 2007 at www.sedar.com.

    Mortgage Financing
    ------------------
    The current real estate debt financing market offers term debt financing
for industrial properties at attractive interest rates. PIRET, where prudent,
will utilize term debt financing to partially fund, and increase the return on
equity on, new acquisitions.
    PIRET has entered into a loan commitment with Canadian Western Bank for a
$2,800,000 first mortgage loan to assist in the acquisition of 4907 - 32nd
Street SE in Calgary, Alberta. The loan will be for a term of 5 years and bear
interest at a spread of 175 basis points over the 5 year Government of Canada
Bond.
    In addition, PIRET has received indicative term sheets from The
Great-West Life Assurance Company and the Canadian Imperial Bank of Commerce
(CIBC) with respect to first mortgage financing on 130 Harry Walker Place in
Newmarket, Ontario and 2705-2737 57th Ave. SE in Calgary, Alberta,
respectively. The aggregate loan amounts total $10,500,000 with 5-year
financing spreads that range from 140 to 145 basis points over the equivalent
term Government of Canada Bond.
    PIRET intends to arrange mortgage financing on 2808 - 58th Ave. SE in
Calgary, Alberta and 16295 - 132nd Ave. in Edmonton, Alberta in an amount
equal to approximately 60% of the combined purchase price, or approximately
$5,040,000. PIRET, given current market conditions, projects that such
mortgage loans will bear interest at a rate which is 165 basis points over an
equivalent term Government of Canada Bond. PIRET has not yet received either a
mortgage commitment or a term sheet relating to such mortgage financings and
the terms may vary from those described.
    PIRET intends to leave the remaining three properties being acquired
unencumbered to provide for additional financing flexibility in the future.
    PIRET remains committed to targeting a manageable leverage ratio within a
range of 60% to 65% of gross book value ("GBV"). PIRET estimates that upon
closing of the offering and completion of the recently announced acquisitions,
its debt to GBV ratio will be approximately 58%.
    Further details pertaining to mortgage financings on each of the acquired
properties will be announced upon completion of the offering and the new
acquisitions.

    Closing
    -------
    Closing of the offering is scheduled to take place in early December 2007
after the filing of a final prospectus with the securities commissions and
other similar regulatory authorities in each of the provinces of Canada. PIRET
has applied to list the Trust Units distributed under this offering on the
Toronto Venture Exchange ("TSX-V"). Listing will be subject to PIRET
fulfilling all of the listing requirements of the TSX-V and is a condition of
completing the offering.

    Distributions
    -------------
    PIRET makes monthly cash distributions to unitholders of record on each
record date, on or about the 15th day of the month following the record date.
PIRET's current monthly cash distribution is $0.025 per unit. The first cash
distribution to which purchasers of the Trust Units under this offering will
be entitled to participate will be for the month of December, with a record
date of December 31, 2007 and a payment date of January 15, 2008.
    The Trust Units being offered have not been and will not be registered
under the United States Securities Act of 1933 and state securities laws.
Accordingly, the Trust Units may not be offered or sold to U.S. persons except
pursuant to applicable exemptions from registration.

    About Pure Industrial Real Estate Trust (PIRET)
    -----------------------------------------------
    PIRET is an unincorporated, open-ended investment trust established for
the purposes of acquiring, owning and operating a diversified portfolio of
income-producing industrial properties in both primary and secondary markets
across Canada. PIRET focuses exclusively on investing in industrial properties
and is the only publicly traded vehicle in Canada that offers investors
exclusive exposure to Canada's industrial asset class.
    PIRET currently owns a portfolio of 10 single-tenant industrial
properties located in British Columbia, Alberta, Manitoba, Ontario and Quebec
with a GLA of 469,621 square feet. Upon closing of the acquisitions discussed
herein, PIRET's industrial portfolio will grow to 18 properties representing
over 800,000 square feet of gross leasable area.
    Additional information about PIRET is available at www.piret.ca or
www.sedar.com.

    Forward-Looking Statements
    --------------------------
    Certain statements in this press release may constitute "forward-looking"
statements that involve known and unknown risks, uncertainties and other
factors that may cause our actual results, performance or achievements or
industry results, to be materially different from any future results,
performance or achievements expressed or implied by such forward-looking
statements. When used in this press release, such statements often use, but
are not limited to, such words as "may", "will", "expect", "should",
"believe", "intend", "plan", "anticipate", "potential", and other similar
terminology. These statements reflect current expectations of management
regarding future events and operating performance and speak only as of the
date of this press release. Forward-looking statements involve significant
risks and uncertainties, should not be read as guarantees of future
performance or results, and will not necessarily be accurate indications of
whether or not such results will be achieved. A number of factors could cause
actual results to differ materially from the results discussed in the
forward-looking statements, including, but not limited to, the following
factors: competitive and economic environment, the results of due diligence
inquiries and negotiation of acquisition documents, impact of changes to tax
treatment of income trusts or dividend tax credits, foreign exchange,
seasonality, inability to close or realize accretive benefits from
acquisitions, fluctuation of cash distributions and nature of trust units.
Although the forward-looking statements contained in this press release are
based upon what PIRET management believes to be reasonable assumptions, PIRET
cannot assure investors that actual results will be consistent with these
forward-looking statements. These forward-looking statements are made as of
the date of this press release and PIRET assumes no obligation to update or
revise them to reflect new events or circumstances.

    THE TSX VENTURE EXCHANGE HAS NOT REVIEWED AND DOES NOT ACCEPT
    RESPONSIBILITY FOR THE ADEQUACY OR THE ACCURACY OF THIS RELEASE.





For further information:

For further information: Darren Latoski, Acting Chief Executive Officer,
Trustee, Andrew Greig, Director of Investor Relations, Pure Industrial Real
Estate Trust (PIRET), Suite 910, 925 West Georgia Street, Vancouver, BC, V6C
3L2, Phone: (604) 681-5959 or (888) 681-5959, E-mail: agreig@piret.ca,
www.piret.ca

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Pure Industrial Real Estate Trust (PIRET)

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