TORONTO, Aug. 12, 2013 /CNW/ - Granite Real Estate Investment Trust ("Granite") (TSX: GRT.UN / NYSE:
GRP.U) announced today that it has agreed to acquire a European portfolio
consisting of 229,000 square meters (2,465,000 square feet) in 7
properties located in Germany and the Netherlands from funds managed by
AEW Europe. The purchase price is €129 million.
The portfolio consists of 7 high quality properties; 4 located in
Germany and 3 located in the Netherlands. Each of the properties is
presently single tenant, 100% occupied, with a flexible design and
multiple enhanced features (security, mezzanines, excess truck and
trailer storage). The clear height of all of the buildings exceeds 34
feet with greater than 37 truck docks per property. The average age of
the properties is 10 years. The 7 tenants include ALSO Actebis, Kühne
+ Nagel, Meyer & Meyer, Ricoh, Tchibo, DB Schenker and Van Uden
Logistic with a weighted average lease term of 5 years.
The transaction is subject to customary closing conditions, with a
partial closing (5 properties) anticipated later in September and a
secondary closing of the remaining two properties anticipated in
October 2013. Granite expects to initially fund the purchase through
its line of credit and cash on hand.
Tom Heslip, Granite REIT's CEO, commented that "This is a major
transaction that brings Granite's total acquisitions thus far in 2013
to approximately C$300 million comprising 4.6 million square feet of
state of the art, strong tenanted, well located logistics and
distribution properties and new development sites. Given the diverse
mix of tenants, industries and geographies, these acquisitions
represent significant progress towards our strategic plan objectives
for growth and diversification".
Granite is a Canadian-based REIT engaged in the ownership and management
of predominantly industrial properties in North America and Europe.
Granite owns approximately 30 million square feet and over 100 properties. Our tenant base currently
includes Magna International Inc. and its operating subsidiaries as our
largest tenants, together with tenants from other industries.
ABOUT AEW EUROPE
AEW Europe is one of the leading European real estate asset and
investment managers. Together with AEW Capital Management in the United
States and Asia, AEW Europe and its regulated subsidiaries - AEW Europe
LLP, NAMI - AEW Europe and AEW Europe SGP - form a global real estate
platform with more than €36 billion in assets under management (of
which €17.6 billion is in Europe). AEW has over 30 years experience in
the management of real estate funds and separate institutional mandates
with 500 employees in 13 locations around the world, including head
offices in Boston, London, Paris and Singapore.
Copies of financial data and other publicly filed documents are
available through the internet on Canadian Securities Administrators'
Systems for Electronic Document Analysis and Retrieval (SEDAR) which
can be accessed at www.sedar.com and on the United States Securities and Exchange Commission's
Electronic Data Gathering, Analysis and Retrieval System (EDGAR) which
can be accessed at www.sec.gov.
This press release may contain statements that, to the extent they are
not recitations of historical fact, constitute ''forward-looking
statements'' within the meaning of applicable securities legislation,
including the United States Securities Act of 1933 and the United
States Securities Exchange Act of 1934. Forward-looking statements may
include, among others, statements regarding Granite's future plans,
goals, strategies, intentions, beliefs, estimates, costs, objectives,
economic performance or expectations, or the assumptions underlying any
of the foregoing. Words such as ''may'', ''would'', ''could'',
''will'', ''likely'', ''expect'', ''anticipate'', ''believe'',
''intend'', ''plan'', ''forecast'', ''project'', ''estimate'' and
similar expressions are used to identify forward-looking statements.
Forward-looking statements should not be read as guarantees of future
events, performance or results and will not necessarily be accurate
indications of whether or the times at or by which such future
performance will be achieved. Undue reliance should not be placed on
such statements. Forward-looking statements are based on information
available at the time and/or management's good faith assumptions and
analyses made in light of our perception of historical trends, current
conditions and expected future developments, as well as other factors
we believe are appropriate in the circumstances, and are subject to
known and unknown risks, uncertainties and other unpredictable factors,
many of which are beyond Granite's control, that could cause actual
events or results to differ materially from such forward-looking
statements. Important factors that could cause such differences
include, but are not limited to the risks set forth in the ''Risk
Factors'' section in Granite REIT's Annual Information Form for 2012,
filed on SEDAR at www.sedar.com and on EDGAR at www.sec.gov, which investors are strongly advised to review. The ''Risk Factors''
section also contains information about the material factors or
assumptions underlying such forward-looking statements. Forward-looking
statements speak only as of the date the statements were made and
unless otherwise required by applicable securities laws, Granite
expressly disclaims any intention and undertakes no obligation to
update or revise any forward-looking statements contained in this press
release to reflect subsequent information, events or circumstances or
SOURCE: Granite REIT
For further information:
please see our website at www.granitereit.com or contact Tom Heslip, Chief Executive Officer, at 647-925-7539 or Michael Forsayeth, Chief Financial Officer, at 647-925-7600.