TORONTO, Feb. 13, 2013 /CNW/ - Granite Real Estate Investment Trust ("Granite") (TSX: GRT.UN / NYSE:
GRP.U) announced today the acquisition of a majority interest in two
income-producing flex industrial properties, one located in Logan, New
Jersey and the other in Savannah, Georgia. The buildings total 713,040
square feet and were acquired for a total purchase price (100%
interest) of U.S.$39.8 million, excluding acquisition costs. Granite's
investment was completed through a joint venture with the vendor,
Dermody Properties. Dermody Properties, a U.S. based national
industrial developer, has retained the remaining interest and will
continue to be responsible for property management and leasing.
The two properties are new format, multi-tenant industrial buildings
that are 95% leased, with a weighted average lease term of 3.7 years.
Major tenants include UPS, Dole and Sears. Additional detail is
available on our website at www.granitereit.com.
The total purchase price for Granite's interest, including all
transaction and due diligence costs, was approximately U.S.$36.5
million. Granite's investment was funded through a combination of
first mortgage debt of U.S.$21.5 million (representing Granite's
portion), Granite's credit facility and cash on hand.
Tom Heslip, CEO of Granite, said "We are pleased to have completed our
first transaction in the implementation of Granite's growth and
diversification strategy. We also look forward to our future dealings
with our joint venture partner, Dermody Properties, who has local
market expertise and a long and successful track record in developing,
operating and managing industrial properties in the United States."
Granite is a Canadian-based REIT engaged in the ownership and management
of predominantly industrial properties in Canada, the United States,
Mexico and Europe. Granite owns approximately 29 million square feet in
106 rental income properties. Our tenant base currently includes
operating subsidiaries of Magna International Inc. as our largest
tenants, together with tenants from other industries.
ABOUT DERMODY PROPERTIES
Dermody Properties is a privately held national industrial real estate
development group, founded and headquartered in Reno, NV, with regional
offices in Phoenix, AZ, Portland, OR, Philadelphia, PA and Chicago, IL.
Over its 50-year history, the company has developed and leased more
than 35 million square feet of high quality industrial/distribution
facilities throughout the U.S., serving the distribution space needs of
Fortune 500 companies and other large customers. To learn more about
Dermody Properties, visit www.Dermody.com.
Copies of financial data and other publicly filed documents are
available through the internet on Canadian Securities Administrators'
Systems for Electronic Document Analysis and Retrieval (SEDAR) which
can be accessed at www.sedar.com and on the United States Securities and Exchange Commission's
Electronic Data Gathering, Analysis and Retrieval System (EDGAR) which
can be accessed at www.sec.gov. For further information, please see our website at www.granitereit.com or contact Tom Heslip, Chief Executive Officer, at 647-925-7539 or
Michael Forsayeth, Chief Financial Officer, at 647-925-7600.
This press release may contain statements that, to the extent they are
not recitations of historical fact, constitute ''forward-looking
statements'' within the meaning of applicable securities legislation,
including the United States Securities Act of 1933 and the United
States Securities Exchange Act of 1934. Forward-looking statements may
include, among others, statements regarding Granite's future plans,
goals, strategies, intentions, beliefs, estimates, costs, objectives,
economic performance or expectations, or the assumptions underlying any
of the foregoing. Words such as ''may'', ''would'', ''could'',
''will'', ''likely'', ''expect'', ''anticipate'', ''believe'',
''intend'', ''plan'', ''forecast'', ''project'', ''estimate'' and
similar expressions are used to identify forward-looking statements.
Forward-looking statements should not be read as guarantees of future
events, performance or results and will not necessarily be accurate
indications of whether or the times at or by which such future
performance will be achieved. Undue reliance should not be placed on
such statements. Forward-looking statements are based on information
available at the time and/or management's good faith assumptions and
analyses made in light of our perception of historical trends, current
conditions and expected future developments, as well as other factors
we believe are appropriate in the circumstances, and are subject to
known and unknown risks, uncertainties and other unpredictable factors,
many of which are beyond Granite's control, that could cause actual
events or results to differ materially from such forward-looking
statements. Important factors that could cause such differences
include, but are not limited to the risks set forth in the ''Risk
Factors'' section in Granite Real Estate Inc.'s management information
circular/proxy statement dated October 11, 2012 and Granite Real Estate
Inc.'s Annual Information Form for 2011, each filed on SEDAR at www.sedar.com and on EDGAR at www.sec.gov, which investors are strongly advised to review. The ''Risk Factors''
sections also contain information about the material factors or
assumptions underlying such forward-looking statements. Forward-looking
statements speak only as of the date the statements were made and
unless otherwise required by applicable securities laws, Granite
expressly disclaims any intention and undertakes no obligation to
update or revise any forward-looking statements contained in this press
release to reflect subsequent information, events or circumstances or
SOURCE: Granite Real Estate Investment Trust
For further information:
Tom Heslip, Chief Executive Officer, at 647-925-7539 or Michael Forsayeth, Chief Financial Officer, at 647-925-7600.