Previously announced $17 million office acquisitions in Quebec completed
MONTREAL, June 28, 2011 /CNW Telbec/ - Homburg Canada Real Estate
Investment Trust (TSX: HCR.UN) ("Homburg Canada REIT" or the "REIT")
announced today that it acquired from CP Developments Inc., a wholly
owned subsidiary of Homburg Invest Inc. ("HII"), the three existing
office buildings that currently comprise the Centron Park Complex in
Calgary's suburban south district, and an interest in lands by way of a
purchase option providing the REIT with the right to acquire the four
remaining buildings of the Complex, as developed. The three buildings
acquired, identified as 100, 200 and 300 Centron Park, added 119,832
square feet of new assets to the REIT's portfolio. The four additional
office buildings, to be known as 400, 500, 600 and 700 Centron Park,
could, when built and purchased, add a further 286,000 square feet to
the REIT's portfolio over the next few years. The gross purchase price
for the existing buildings and the purchase option is $39.7 million,
excluding closing and transaction costs. This represents a going-in
capitalization rate of approximately 7.25%.
"We contemplated adding Centron Park to our office portfolio from the
closing of our initial public offering as soon as the appropriate
opportunity arose. We are extremely pleased to deliver on this project
today. It was completed pursuant to the rights granted to the REIT at
the time it was created," said Jim Beckerleg, President and Chief
Executive Officer of Homburg Canada REIT. "Calgary is a strengthening
market for office space. The addition of this high-quality asset to our
portfolio, combined with the REIT's formalized option on the remaining
four buildings and related land, puts us in a very favourable position
to benefit from this market's increasing dynamism and future growth,"
Mr. Beckerleg added.
The REIT also announced today the closing of the previously announced
transactions to acquire two properties in the province of Quebec,
consisting of a two-storey "Class B+" office building located at 2405
Fernand-Lafontaine Boulevard in Longueuil, and a four-storey "Class A"
office building located at 6777 de la Rive-Sud Boulevard in Levis. The
gross purchase price of $17 million, excluding closing and transaction
costs, represented a weighted average going-in capitalization rate of
approximately 8%. The two transactions added 113,259 square feet of new
assets to the REIT's portfolio.
In total, the REIT completed $56.7 million worth of new acquisitions in
the office segment of the market today.
Centron Park's Buildings 100 - 3600 4th Street SE, 200 - 4000 4th Street
SE, and 300 - 4000 4th Street SE (Calgary, Alberta)
Centron Park is a "Class A" suburban office complex located in
Manchester Commercial Park, a well established light industrial and
commercial district situated approximately three kilometres from
Calgary's central business district. Currently under development, the
Complex will, when completed, include seven one-to-three storey office
buildings. The gross purchase price of $39.7 million for buildings 100,
200, 300 and the purchase option will initially be satisfied through
the use of the proceeds of the REIT's public offering completed in
March, 2011, with long term financing expected to be placed on the
office buildings later in the year.
Situated on 1.32 acres of land, building 100 is a 12,517-square-foot,
single-storey "Class A" office building comprising 54 parking stalls,
30 of which are underground. Completed in 2011, it is located at the
extreme north end of the Complex and will be 100% occupied, with tenant
occupancy expected in the third quarter of 2011.
Constructed in 2009, building 200 is a 38,933-square-foot, two-storey
"Class A" office building located in the east and centre portion of the
Centron Park complex. Situated on a 1.56-acre parcel of land, the
multi-tenant building has 129 parking stalls. It is 100%-leased and
benefits from a direct access to the major roadway 4th Street SE.
Finally, building 300 is a 68,382-square-foot, three-storey "Class A"
office building situated on a 2.76-acre parcel of land at the extreme
South East portion of the Centron Park office complex. Expected to be
occupied in the third quarter of 2011, the property includes 124
parking stalls, 70 of which are underground. It is multi-tenanted and
The six largest tenants of buildings 100, 200 and 300 include Enercore
Projects, Stantec Consulting, Clean Energy, Global Raymac Solutions,
Vista Projects and HII. Together, they occupy 96% of the buildings'
gross leasable area, with a weighted average lease term (excluding the
vendor head lease) of 8.4 years.
The three buildings acquired are subject to a fully-secured vendor head
lease over approximately 24 % of the properties' gross leasable area.
The terms of the transaction further provide for the REIT to receive
income equivalent to 100 % occupancy of the three buildings from the
date of closing.
The transaction is a "related party transaction" under applicable
securities laws and all independent trustees of the REIT have
unanimously approved the terms of the transaction.
About Homburg Canada Real Estate Investment Trust
Homburg Canada Real Estate Investment Trust 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, the REIT owns a portfolio of Canadian income-producing
commercial properties, consisting mainly of retail and office
properties with certain industrial properties, as well as certain
income-producing multi-family residential properties. The properties
comprise approximately 8.0 million square feet of commercial gross
leasable area and 1,725 multi-family residential units located in
Quebec, Atlantic Canada, Western Canada and Ontario.
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 the REIT's latest
annual information form.
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, including its latest
annual information form, which are available on SEDAR at www.sedar.com.
SOURCE Homburg Canada Real Estate Investment Trust
For further information:
| Investors: |
| James W. Beckerleg |
President and Chief Executive Officer
Homburg Canada REIT
514-931-2591, ext. 358
| Gordon G. Lawlor, CA |
Executive Vice President, Chief Financial Officer and Secretary
Homburg Canada REIT
514-931-2591, ext. 313
| Media: |
| Anne-Marie Durand |
NATIONAL Public Relations