BROSSARD, QC, Sept. 3, 2013 /CNW Telbec/ - BLF Real Estate Investment Trust ("BLF REIT") (TSXV: BLF.UN) announces today the acquisition of a multi-unit residential building comprised of 306 units located at 3545-3577 Rivard Street in the city of Laval, Québec for a purchase price of $20,275,000. The complex is comprised of eight three-storey rental apartment buildings in the center of Laval near the intersections of Saint-Martin East and Lesage Boulevards with easy access to Highways 19, 25 and 440. Management estimates that factoring in the fair value adjustment on the assumed mortgage, the effective capitalization rate on the acquisition is 6.2%. An independent estimate of the fair market value of the property was obtained which, on that same basis, translates into an appraised value of approximately $23.7 million.
BLF REIT believes that this first acquisition in the Laval market will allow BLF REIT to establish a solid foundation for other transactions in this important rental housing market. BLF REIT assumed the mortgage in place of approximately $12,989,000 at an interest rate of 5.04% and which matures on July 1, 2020. BLF REIT financed this acquisition with its term acquisition facility.
"We are confident that our creative and professional management approach will allow us to accomplish an interesting repositioning of this asset which will be accretive" said Mathieu Duguay, President and Chief Executive Officer of BLF REIT.
BLF REIT equally announces a distribution of $0.0308 per unit to the registered holders of units at September 30, 2013, payable on October 15, 2013.
About BLF REIT
The principal business of BLF REIT is acquiring, holding, developing, maintaining, improving, leasing, managing or otherwise dealing with income-producing multi-unit residential properties located throughout Québec. BLF REIT currently owns eight properties located in Greater Montréal, Sherbrooke and Québec City totaling 1,054 apartment units.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
SOURCE: BLF Real Estate Investment Trust
For further information:
Mr. Daniel Blanchette
Chief Financial Officer
450-672-5090 ext. 401