VANCOUVER, Dec. 14 /CNW/ - Pure Industrial Real Estate Trust ("PIRET" or
the "REIT") (TSXV: AAR.UN) today announced that it has filed a final short
form prospectus in each of the provinces of Canada for a public offering (the
"Offering") of 2,150,000 trust units ("Units") of the REIT at a price of $3.80
per Unit, for gross proceeds to the REIT of $8,170,000. "Given the difficult
market conditions over the last few weeks we are extremely happy with the
result of this latest financing - this success is a true testament to our
strategy and the quality of our portfolio," said Darren Latoski, PIRET's
acting Chief Executive Officer.
The Offering was sold by a syndicate of agents led by Dundee Securities
Corporation and RBC Dominion Securities Inc., and including Raymond James
Ltd., BMO Nesbitt Burns Inc., Blackmont Capital Inc., Bieber Securities Inc.,
Canaccord Capital Corporation, MGI Securities Inc., and Sora Group Wealth
The REIT has also granted the agents an over-allotment option to purchase
up to an additional 322,500 Units for gross proceeds of $1,225,500 if
exercised in full. This over-allotment option expires 30 days following
closing of the Offering.
The proceeds of this Offering will be used by PIRET to fund the
acquisition of a portfolio of 4 income-producing industrial properties,
located in Alberta and Ontario, aggregating 284,618 sq. ft of GLA. PIRET has
already closed on the previously announced acquisition of the "Tornado
Property", which is located at 4907 32nd Street SE in Calgary Alberta. The
Tornado Property was acquired on November 20th for $3,900,000 with a
combination of mortgage debt and existing cash on hand. PIRET will use any
surplus proceeds from the Offering and any additional proceeds from the
over-allotment option for general corporate purposes, including future
"This latest financing provides PIRET with an excellent foundation to
move forward with its business objectives in the near term," said Darren
Latoski, PIRET's acting Chief Executive Officer. "The immediate impact of
these accretive acquisitions is an organization with a portfolio of 15
industrial properties that have an average remaining lease term of 10.3 years.
Our portfolio does not have a single lease renewal until 2011, which in the
interim provides our unit holders with a steady and predictable cash flow
stream, resulting from tangible real estate assets, in the low volatility
industrial asset class.
Distributions are intended to be approximately $0.025 per month, payable
on or about the 15th day of each month to Unitholders of record at the end of
the immediately preceding month.
PIRET's Units are listed on the TSX 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, acting Chief Executive Officer,
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: firstname.lastname@example.org,