MONTRÉAL, Dec. 5, 2014 /CNW Telbec/ - (TSXV: NEL.UN) Nobel Real Estate Investment Trust ("Nobel REIT" or the "REIT") is pleased to announce that it has acquired an office building comprising 50,631 square feet of gross leasable area, located on a 109,690 square feet site area at 10500 Ryan Avenue in the city of Dorval, Quebec, for a purchase price of $13,850,000, excluding acquisition costs. It is a sale leaseback transaction with Dicom Transportation Group Canada Inc., which occupies the entire building pursuant to a 15-year lease that expires in December 2029; the lease also contains renewal options. The effective capitalization rate of the acquisition is 7.02%. Jones Lang LaSalle acted as real estate broker for the vendors in this transaction.
This acquisition was financed by a loan in the amount of $9,760,000, secured by a first ranking hypothec on the acquired property, with the balance of the purchase price satisfied with part of the net proceeds of the REIT's recent first tranche private placement completed on December 3, 2014. The secured loan bears interest at a fixed rate of 4.10% for a ten-year term; it was provided by MCAP Financial Corporation. The land on which this office building is located is currently under emphyteutic lease from an arm's length third party. An amount of $1,150,000 was held back from the mortgage loan and set aside to cover the cost of acquiring the land from the emphyteutic lessor when the land option becomes exercisable in 2022.
Jean Teasdale, President and CEO of Nobel REIT commented: "We are very happy about this quality and highly strategic acquisition in terms of our growth strategy".
About Nobel REIT
Nobel REIT is an unincorporated open-ended real estate investment trust governed by the laws of the Province of Québec. Nobel REIT has been created for the purpose of acquiring and owning income producing properties. The REIT will focus on acquiring commercial retail, mixed-used retail, and industrial and suburban office properties in the primary and secondary markets in the Province of Québec. Nobel REIT currently owns six properties located in Québec, comprising 240,041 square feet of gross leasable area.
Disclaimer – Safe Harbour Forward–Looking Statements
Forward-looking statements contained in this press release involve known and unknown risks, uncertainties and other factors that may cause actual results, performance and achievements of the REIT to be materially different from any future results, performance or achievements expressed or implied by the said forward-looking statements.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
SOURCE: Nobel Real Estate Investment Trust
For further information: Additional information may be obtained by contacting: Louis Lemire, CPA, CA, Chief Financial Officer, Nobel Real Estate Investment Trust, 1185, Chemin du Tremblay, Suite 230, Longueuil, Quebec, J4N 1R4, Tel: 450-655-4338; Renmark Financial Communications Inc., Lorraine Athaide: [email protected], Mariam Ghoneim : [email protected], Tel.: (416) 644-2020 or (514) 939-3989, www.renmarkfinancial.com