MONTRÉAL, March 16, 2020 /CNW/ - PRO Real Estate Investment Trust ("PROREIT" or the "REIT") (TSX: PRV.UN) is pleased to announce the closing of its acquisition of a 100% interest in a 135,494 square-foot light industrial property in Moncton, New Brunswick. The temperature-controlled building was acquired for $8.36 million before closing costs, representing a going-in capitalization rate of 6.80%.
Built in 1979 and expanded in 2000, the building is located adjacent to the Trans-Canada Highway at 123 Price Street in Moncton. With a warehouse clear height of 18 to 50 feet, the building is 100% occupied by a national logistics company with a long-term lease that includes annual rent steps up until December 2032. The property includes an additional 6 acres of land that could be used for building expansion or other opportunities.
"With the addition of this light industrial building, strategically located in the gateway city of Moncton, we are further strengthening our portfolio and increasing our exposure to the strong industrial sector," said Jim Beckerleg, President and CEO, PROREIT.
The $8.36 million purchase price was financed by the proceeds from a new $5.75 million 7-year first mortgage at a historically-low rate of 2.64%. The balance of the purchase price of $2.6 million was satisfied through a draw on available operating facilities that were previously paid down in a recent equity financing.
PROREIT (www.proreit.com) is an unincorporated open-ended real estate investment trust owning a diversified portfolio of 93 commercial properties across Canada representing over 4.5 million square feet of GLA. Established in March 2013, PROREIT is mainly focused on strong primary and secondary markets in Québec, Atlantic Canada and Ontario, with selective exposure in Western Canada.
For further information: PRO Real Estate Investment Trust, James W. Beckerleg, President and Chief Executive Officer, 514-933-9552; PRO Real Estate Investment Trust, Gordon G. Lawlor, CPA, CA, Executive Vice President, Chief Financial Officer and Secretary, 514-933-9552