MONTREAL, Dec. 20 /CNW Telbec/ - Homburg Canada Real Estate Investment Trust (the "REIT") (TSX: HCR.UN) announced today that the REIT has closed the previously announced transaction to acquire the Complex Papineau-Levesque, a 168,947 square foot office building in downtown Montreal. The $30 million purchase price was satisfied using cash on hand. Long term financing is expected to be placed on the property in the first quarter of 2011.
"We are pleased with the acquisition of the Complex Papineau-Levesque, which along with our other acquisition this week of Place Bathurst Mall in Bathurst, New Brunswick, meets our declared objective of creating accretive external growth through the purchase of quality assets," said Jim Beckerleg, President and Chief Executive Officer. "The properties are close to our strong Montreal and Dartmouth management platforms and can be absorbed efficiently into our operations. We look forward to similar portfolio additions in the near future."
The Complex Papineau-Levesque is comprised of two adjacent five storey office towers totaling 168,947 square feet of gross leasable area, 1.1 acres of land and 267 parking stalls of which 258 are underground. It is strategically situated on the northwest corner of the intersection of Papineau Avenue and Rene-Levesque Boulevard East in Montreal, where it is within three kilometers of downtown. The area, which is known as "Cité des Ondes," benefits from a concentration of television and radio companies. The building is in close proximity to the Papineau metro station with access to all major thoroughfares in the area, including Highways 20, 25, and 720, as well as the Jacques-Cartier Bridge, one of Montreal's main access points. The building is 100% occupied by 13 high-quality diversified tenants including Astral Media and SSQ Life Insurance Company. Five major tenants account for approximately 75% of the area with the average lease maturity of the total building at just less than five years.
"Our pipeline of potential acquisitions continues to grow as the market becomes increasingly aware of Homburg Canada REIT and our growth strategy," continued Mr. Beckerleg. "We are looking at several office and retail opportunities and we will pursue those that best fit our financial parameters and operating strategy. We look forward to an active year in 2011."
About Homburg Canada Real Estate Investment Trust
Homburg Canada Real Estate Investment Trust is an unincorporated open-ended real estate investment trust established pursuant to a declaration of trust under the laws of the Province of Quebec. Managed internally, the REIT owns a portfolio of Canadian income-producing commercial properties, comprised mainly of retail and office properties with certain industrial properties, as well as certain income-producing multi-family residential properties. The properties comprise approximately 6.9 million square feet of commercial gross leasable area and 1,725 multi-family residential units located in Quebec, Atlantic Canada, Western Canada and Ontario.
This press release may contain forward-looking information within the meaning of applicable securities legislation. Forward-looking information is based on a number of assumptions and is subject to a number of risks and uncertainties, many of which are beyond the REIT's control that could cause actual results and events to differ materially from those that are disclosed in or implied by such forward-looking information. Such risks and uncertainties include, but are not limited to, the factors discussed under "Risk Factors" in the prospectus of the REIT dated May 14, 2010.
The REIT's objectives and forward-looking statements are based on certain assumptions, including that (i) the REIT will receive financing on favourable terms; (ii) the future level of indebtedness of the REIT and its future growth potential will remain consistent with the REIT's current expectations; (iii) there will be no changes to tax laws adversely affecting the REIT's financing capacity or operations; (iv) the impact of the current economic climate and the current global financial conditions on the REIT's operations, including its financing capacity, and asset value, will remain consistent with the REIT's current expectations; (v) the performance of the REIT's investments in Canada will proceed on a basis consistent with the REIT's current expectations; and (vi) capital markets will provide the REIT with readily available access to equity and/or debt.
The forward-looking statements contained in this press release are expressly qualified in their entirety by this cautionary statement. All forward-looking statements in this press release are made as of the date of this press release. The REIT, except as required by applicable securities legislation, does not undertake to update any such forward-looking information whether as a result of new information, future events or otherwise. Additional information about these assumptions and risks and uncertainties is contained in the REIT's filings with securities regulatory authorities, which are available on SEDAR at www.sedar.com.
For further information: For further information:
|James W. Beckerleg
President and Chief Executive Officer
Homburg Canada Real Estate Investment Trust
514-931-2591 ext. 358
|Paul de la Plante
NATIONAL Public Relations
|Gordon G. Lawlor, CA
Chief Financial Officer
Homburg Canada Real Estate Investment Trust
514-931-2591 ext. 313