Huntingdon Capital Corp. announces binding agreement to sell Portage Place, Peterborough, Ontario
RICHMOND, BC, April 9, 2012 /CNW/ - Huntingdon Capital Corp. ("Huntingdon") (TSX: HNT, HNT.DB and HNT.WT) announced today that it has entered into a binding agreement to sell Portage Place, Peterborough, Ontario.
The previously announced agreement in February 2012 to sell 4 Ontario retail properties has been amended to include Portage Place. The revised terms of the agreement include the sale of 5 Ontario retail properties for gross sale proceeds of $80.0 million. Based on 2012 budgeted net operating income, this transaction represents a 6.3% capitalization rate.
The revised agreement also includes a $5.0 million interest only vendor take-back mortgage bearing interest at a rate of 5.5% per annum and maturing two years after the closing date. The vendor take-back mortgage is secured by a second charge on Portage Place. The sale will result in net cash, excluding the vendor take-back mortgage, of approximately $59.4 million after expenses, closing adjustments and the repayment of $14.2 million of mortgage debt.
Portage Place is a 226,714 square foot enclosed shopping centre located in Peterborough, Ontario with occupancy of 87.8% as at December 31, 2011.
Consistent with the previous announcement, management anticipates there will be no taxes payable arising from this transaction resulting in significant cash flow accretion to shareholders.
The proceeds from the sale will be used for the repayment of mortgage debt, the return of capital to shareholders and potential acquisitions. The transaction is expected to close in May 2012.
About Huntingdon:
Huntingdon owns, directly or indirectly, 73 income producing office, industrial and retail properties that have a total gross leasable area of 5.4 million square feet.
The Toronto Stock Exchange has not reviewed nor approved the contents of this press release and does not accept responsibility for the adequacy or accuracy of this press release.
Zachary R. George, Director, President and Chief Executive Officer
Tel: (604) 249-5119
Fax: (604) 249-5101
Email: [email protected]
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