VANCOUVER, Nov. 20 /CNW/ - Pure Industrial Real Estate Trust ("PIRET")
(TSXV: AAR.UN) today announce that the acquisition previously announced on
October 18, 2007 has now closed.
The total purchase price of $3.9 million represents an initial unlevered
return ("capitalization rate") of 8.97 %. PIRET completed the financing of
this acquisition with cash and from the proceeds of new first mortgage in
favour of Canadian Western Bank, bearing a fixed interest rate of 5.67% per
annum for a term of 5 years.
The property, located at 4907 - 32nd Street, in Calgary, Alberta, is
situated on 3.23 acres in the Foothills Industrial Park and is leased on a
five year term to Tornado Technologies Inc., a company involved in the design
& manufacturing of combustion and process equipment for the petroleum industry
and truck-mounted vacuum equipment for the utility, construction and energy
The buildings on the site are comprised of two 10,000 square foot
buildings, one for manufacturing and containing two ten ton cranes, the other
for office and warehouse purposes.
PIRET believes that this acquisition will be immediately accretive to
cash flow on a per units basis. This "off-market" transaction shows PIRET's
ability to purchase high quality industrial assets at excellent price points
in the strong industrial centres in Canada.
PIRET's Units are listed on the TSE Venture Exchange under the symbol
AAR.UN. For more information on PIRET, visit our website at www.piret.ca
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 will focus exclusively on investing in industrial
properties and will be the only publicly traded vehicle in Canada that offers
investors exclusive exposure to Canada's industrial asset class.
Additional information about PIRET is available at www.piret.ca or
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's 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, 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: email@example.com, www.piret.ca