MONTRÉAL, Sept. 9, 2014 /CNW Telbec/ - (TSXV: NEL.UN) Nobel Real Estate Investment Trust ("Nobel REIT" or the "REIT") is pleased to announce that it has acquired a commercial property comprising 18,637 square feet of gross leasable area, located on a 53,765 square feet site area at 2301 Versailles in the city of Mascouche, Quebec, for a purchase price of $3,575,000, excluding acquisition costs. The occupancy of this new neighborhood commercial center, located in the hearth of a new booming residential development, is currently 77% and the main tenants are Garderie Éducative Les Piverts Inc. and Dépanneur L'Esplanande Inc. (Bonisoir); the leases are expiring over a period ranging from November 2017 to May 2018.
This acquisition was financed by a loan in the amount of $2,325,000, secured by a first ranking hypothec on the acquired property granted by the seller. The secured loan bears interest at a fixed rate of 4.00% for a three-year term; the interest is payable monthly and the principal will be payable at maturity only. The effective capitalization rate of the acquisition is 7.59%.
Nobel REIT is also pleased to announce today a cash distribution of $0.000509 per trust unit of the REIT for the month of September 2014. The distribution will be payable on October 15, 2014 to unitholders of record as at September 30, 2014.
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 five properties located in Québec, comprising 186,955 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 Nobel 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: Louis Lemire, CPA, CA, Chief Financial Officer, at (450) 655-4338.