TORONTO, Oct. 4, 2012 /CNW/ - KEYreit (TSX: KRE.UN) ("KEYreit") today announced that it has closed the previously announced acquisition of three retail properties from companies affiliated with Dundee Real Estate Investment Trust ("Dundee REIT") for a purchase price of $16.07 million (excluding transaction costs).
The acquisition is comprised of two properties located in Charlottetown, Prince Edward Island and one property in Halifax, Nova Scotia, totalling 101,473 square feet of gross leasable area ("GLA"). The property portfolio is 100% leased with an overall average lease term of approximately four years.
The total purchase price was satisfied through the assumption of existing mortgage debt of approximately $7.0 million bearing a weighted average interest rate of 5.43% and net proceeds received from KEYreit's equity offering completed in August 2012.
"This acquisition fits perfectly with KEYreit's investment strategy: "small box" retail, located in solid markets, with over 84% of GLA leased to national or major retail tenants," said Kevin Salsberg, Chief Operating Officer of the REIT. "With tenants such as Bed Bath & Beyond, Staples and Lawton's Drugs, we continue to strengthen and diversify KEYreit's tenant base."
Including this acquisition, KEYreit now owns a portfolio of 232 retail properties and more than 1.2 million square feet of retail space in nine provinces across Canada.
KEYreit (TSX: KRE.UN) (formerly Scott's Real Estate Investment Trust) is Canada's premier small-box retail property owner with 232 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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