TORONTO, March 18, 2013 /CNW/ - KEYreit (TSX: KRE.UN) ("KEYreit" or the
"REIT") announced today that it has waived due diligence conditions in
an agreement to acquire two retail investment properties located in
Alberta for a purchase price of $10 million comprising 50,494 square
feet of gross leasable area ("GLA").
The total purchase price will be satisfied by new mortgage debt of $6.3
million bearing an interest rate of 3.8%, term of 5 years, and
amortization period of 20 years, and funds drawn from KEYreit's
previously announced operating line expected to close in early April
One property is a single-tenant site located in Olds, Alberta, while the
second property is located in Lloydminster, Alberta, a new market for
KEYreit. The portfolio is 100% leased with an overall average remaining
lease term of approximately 5.2 years and with 82% of the GLA
comprising national tenants.
4607 - 50th Avenue,
Shopper's Drug Mart
Lloydminster Plaza - 5519 -
44th Street, Lloydminster,
The Brick, Premium
Spas & Billiards
"This acquisition adds a twenty-fourth Shoppers Drug Mart location to
our portfolio and executes KEYreit's strategy to grow our small box
retail assets with a diversified tenant base of strong national
tenants, including a new tenant for KEYreit, The Brick," said John
Bitove, Chief Executive Officer of KEYreit. "We are also pleased to
increase our presence in the high growth province of Alberta,
continuing to expand our geographic footprint in Western Canada."
The acquisition is expected to close around mid-April 2013 and is
subject to customary closing conditions.
KEYreit (TSX: KRE.UN) is Canada's premier small-box retail property
owner with 226 properties in nine provinces across Canada. KEYreit's
properties are well located and geographically diverse across Canada
with the majority of all properties containing long-term quadruple net
To find out more about KEYreit (TSX: KRE.UN), visit our website at www.keyreit.com.
For further information:
For investor information, please contact:
Chief Financial Officer
KEYreit unitholders, please contact:
Kingsdale Shareholder Services Inc.
1-888-518-1562 toll-free in North America
1-416-867-2272 outside of North America (collect calls accepted)
Media, please contact:
Longview Communications Inc.
Alan Bayless 604-694-6035, firstname.lastname@example.org
Olena Lobach 416-649-8009, email@example.com