TORONTO, April 24, 2013 /CNW/ - KEYreit (TSX: KRE.UN) ("KEYreit" or the "REIT") announced today that it has closed the previously announced acquisition of two small box retail investment properties located in Alberta for a purchase price of $10 million comprising 50,494 square feet of gross leasable area ("GLA").
The total purchase price was satisfied by new mortgage debt of $6.3 million bearing an interest rate of 3.8%, a term of 5 years and an amortization period of 20 years, and funds drawn from KEYreit's credit facility that closed on April 18, 2013.
One property is a single-tenant site leased to Shoppers Drug Mart and located in Olds, Alberta, while the second property is a two-tenant asset anchored by The Brick and located in Lloydminster, Alberta. The portfolio is 100% leased with an overall average remaining lease term of approximately 5.1 years and with 82% of the GLA comprising national tenants.
KEYreit also announced today that on April 18, 2013, it closed the previously announced revolving credit facility for $15 million (the "Facility") with a Canadian Chartered Bank. The Facility is secured by 22 of the REIT's properties and is renewable annually at the lender's discretion. The Facility is in the form of rolling one-month bankers' acceptances ("BAs") bearing interest at the BA rate plus 3.00% or at the bank's prime rate plus 2.00%. The Facility also bears a stand-by fee of 0.75% on any undrawn portion. As at today's date the formula-based amount available under the Facility is $14.1 million, and $8 million has been drawn on the Facility. The Facility expires on April 17, 2014.
KEYreit (TSX: KRE.UN) is Canada's premier small-box retail property owner with 227 properties in nine provinces across Canada. KEYreit's properties are well located and geographically diverse across Canada with the majority of all properties containing long-term quadruple net leases.
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