CANMARC acquires Le 888 St-Jean office building in downtown Quebec City

MONTREAL, Nov. 7, 2011 /CNW Telbec/ - CANMARC Real Estate Investment Trust ("CANMARC" or the "REIT") (TSX: CMQ.UN) announced today that it has acquired Le 888 St-Jean, a five-story office building in downtown Quebec City that is primarily leased to divisions of the provincial and federal governments. The $9.1 million gross purchase price was satisfied through the assumption of a 4.16%, $3.57 million mortgage in place on the property and the use of cash on hand, which represents a going-in capitalization rate of approximately 8%.  The transaction, which is accretive to adjusted funds from operations and net earnings, closed on Friday, November 4, 2011.

Le 888 St-Jean

Le 888 St-Jean is a 76,713 square foot office building built in 1980 and renovated completely in 2003.  It is located in the immediate vicinity of the Quebec National Assembly and the Centre des Congrès in downtown Quebec City.  The property fronts rue St-Jean, which is a major retail artery with numerous restaurants and boutiques. Le 888 St-Jean is surrounded by other well-known landmarks, such as Place d'Youville square and the Saint-Jean Gate (one of the two main historical gates leading into the Old City).

Le 888 St-Jean is fully leased, with its three main tenants occupying 94% of the gross leasable area of the building.  Major tenants include the federally owned Radio Canada, who has its main radio and television studios in Quebec City at this location, and the provincially owned Société Immobilière du Québec.  The average remaining lease term is 5.2 years.

"The Quebec City office market is one of the strongest and most stable in Canada, with a current vacancy rate of approximately 5.5%," said Jim Beckerleg, President and Chief Executive Officer of CANMARC.  "Le 888 St-Jean adds to our presence in this key market."

About CANMARC Real Estate Investment Trust

CANMARC ( is an unincorporated open-ended real estate investment trust established pursuant to a declaration of trust under the laws of the Province of Quebec. Managed internally, CANMARC owns a portfolio of Canadian income-producing commercial properties, consisting of retail and office properties with certain industrial properties. In total, CANMARC properties comprise approximately 8.8 million square feet of commercial gross leasable area and 464 multi-family residential units located in Quebec, Atlantic Canada, Western Canada and Ontario.

Forward-looking Statements

This news release may contain forward-looking information within the meaning of applicable securities legislation. Forward-looking information is based on a number of assumptions and is subject to a number of risks and uncertainties, many of which are beyond the REIT's control that could cause actual results and events to differ materially from those that are disclosed in or implied by such forward-looking information. Such risks and uncertainties include, but are not limited to, the factors discussed under "Risk Factors" in its IPO prospectus, dated May 14, 2010.

The REIT's objectives and forward-looking statements are based on certain assumptions, including that (i) the REIT will receive financing on favourable terms; (ii) the future level of indebtedness of the REIT and its future growth potential will remain consistent with the REIT's current expectations; (iii) there will be no changes to tax laws adversely affecting the REIT's financing capacity or operations; (iv) the impact of the current economic climate and the current global financial conditions on the REIT's operations, including its financing capacity and asset value, will remain consistent with the REIT's current expectations; (v) the performance of the REIT's investments in Canada will proceed on a basis consistent with the REIT's current expectations; and (vi) capital markets will provide the REIT with readily available access to equity and/or debt.

The forward-looking statements contained in this news release are expressly qualified in their entirety by this cautionary statement. All forward-looking statements in this press release are made as of the date of this press release. The REIT, except as required by applicable securities legislation, does not undertake to update any such forward-looking information whether as a result of new information, future events or otherwise. Additional information about these assumptions and risks and uncertainties is contained in the REIT's filings with securities regulatory authorities, which are available on SEDAR at

Image with caption: "Le 888 St-Jean in Quebec City is CANMARC's newest acquisition (CNW Group/CANMARC REAL ESTATE INVESTMENT TRUST)". Image available at:


For further information:


James W. Beckerleg
President and Chief Executive Officer

Gordon G. Lawlor, CA
Executive Vice President, Chief Financial
Officer and Secretary


Mélanie Tardif, CMA
NATIONAL Public Relations

Profil de l'entreprise


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