TORONTO, March 19, 2013 /CNW/ - Firm Capital Property Trust ("FCPT" or the "Trust") (TSXV : FCD.UN) announced today that it has an agreement to purchase a 42,884 square foot professional services medical building for a purchase price of approximately $6.7 million (excl. transaction costs) subject to standard closing conditions. The property is located in Barrie, Ontario, on Wellington St. West, a short distance to Highway 400 and the Dunlop Street West intersection. The property has excess development land possibilities.
The property is currently 99% occupied by physicians and ancillary medical service providers. Based on the purchase price, the going-in capitalization rate for the property is approximately 7.8%.
The property diversifies the Trust's property portfolio and is expected to provide stable cash flows. The acquisition will provide a solid foundation from which to grow the core service provider professional space end of the Trust's portfolio.
The Trust intends to fund the purchase through the assumption of an existing first mortgage on the property and internal cash resources. The acquisition is expected to close during April 2013 and is subject to the satisfaction of customary closing conditions.
ABOUT FIRM CAPITAL PROPERTY TRUST
Firm Capital Property Trust is focused on creating long-term value for Unitholders, through capital preservation and disciplined investing to achieve stable distributable income. In partnership with management and industry leaders, The Trust plan is to co-own a diversified property portfolio of multi-residential, flex industrial, net lease convenience retail, and core service provider professional space. In addition to stand alone accretive acquisitions, the Trust will make joint acquisitions with strong financial partners and acquisitions of partial interests from existing ownership groups, in a manner that provides liquidity to those selling owners and professional management for those remaining as partners. Firm Capital Realty Partners Inc., through a structure focused on an alignment of interests with the Trust, will source, syndicate and participate in investments.
FORWARD LOOKING INFORMATION
This press release may contain forward-looking statements. In some cases, forward-looking statements can be identified by the use of words such as "may", "will", "should", "expect", "plan", "anticipate", "believe", "estimate", "predict", "potential", "continue", and by discussions of strategies that involve risks and uncertainties. The forward-looking statements are based on certain key expectations and assumptions made by the Trust regarding, among other things, the use of the net proceeds from the Offering, the closing of the Offering, and the closing of the Acquisition. By their nature, forward-looking statements involve numerous assumptions, inherent risks and uncertainties, both general and specific, that contribute to the possibility that the predictions, forecasts, projections and various future events will not occur. Although management of the Trust believes that the expectations reflected in the forward-looking statements are reasonable, there can be no assurance that future results, levels of activity, performance or achievements will occur as anticipated. Neither the Trust nor any other person assumes responsibility for the accuracy and completeness of any forward-looking statements, and no one has any obligation to update or revise any forward-looking statement, whether as a result of new information, future events or such other factors which affect this information, except as required by law.
This press release shall not constitute an offer to sell or the solicitation of an offer to buy, which may be made only by means of a prospectus, nor shall there be any sale of the Units in any state, province or other jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under securities laws of any such state, province or other jurisdiction. The Units of the Firm Capital Property Trust have not been, and will not be registered under the U.S. Securities Act of 1933, as amended, and may not be offered, sold or delivered in the United States absent registration or an application for exemption from the registration requirements of U.S. securities laws.
SOURCE: Firm Capital Property Trust
For further information:
President & Chief Executive Officer
Chief Financial Officer