RICHMOND, BC, Feb. 14, 2012 /CNW/ - Huntingdon Capital Corp. ("Huntingdon" or the "Corporation") (TSX: HNT, HNT.DB and HNT.WT) announced today that it has entered into a binding agreement to sell four retail properties in Ontario for gross sale proceeds of $54.0 million. The sale price represents a 6.9% capitalization rate based on 2011 net operating income.
The sale will result in net cash to Huntingdon of approximately $47.1 million after expenses, closing adjustments and the repayment of $6.2 million of mortgage debt.
Under the terms of the agreement, Huntingdon will sell a total of 641,862 square feet of strip malls and shopping centres in Southern Ontario. The properties being disposed of include Crossroads Centre, London; Suncoast Mall, Goderich; Lincoln Centre, Welland; and Speedvale Centre, Guelph.
Management highlights the following benefits of this transaction:
- The gross proceeds are greater than the IFRS value of the properties as of the third quarter of 2011
- Nominal taxes payable from the transaction resulting in greater cash flow accretion to shareholders
- The transaction will result in an increase in pro forma portfolio occupancy by approximately 30 bps.
The proceeds from the sale will be used for the repayment of mortgage debt, the return of capital to shareholders, and potential acquisitions. The transaction is expected to close in May 2012.
About Huntingdon Capital Corp.:
Huntingdon Capital Corp. owns, directly or indirectly, 75 income producing office, industrial and retail properties that have a total gross leasable area of 5.5 million square feet.
The Toronto Stock Exchange has not reviewed nor approved the contents of this press release and does not accept responsibility for the adequacy or accuracy of this press release.
For further information:
Zachary R. George, Director, President and Chief Executive Officer
Tel: (604) 249-5119
Fax: (604) 249-5101
Email: [email protected]