MONTRÉAL, Dec. 12, 2013 /CNW/ - PRO Real Estate Investment Trust ("PROREIT" or the "REIT") (TSXV: PRV.UN) announced today its first acquisition since completing
the acquisition of the four properties that were acquired further to
the public offering of PROREIT, which closed on November 26, 2013.
PROREIT has entered into a binding agreement to acquire an office
property located at 325 Hymus Boulevard in Pointe-Claire, Québec for
$3.38 million (excluding closing and transaction costs), of which
approximately $1.01 million will be satisfied through the issuance of
Class B limited partnership units of PRO REIT Limited Partnership, a
subsidiary of the REIT, at a price per unit of $2.40. The balance of
the purchase price will be satisfied through the use of PROREIT's
revolving credit facility which will be expanded to a maximum
availability of $9 million from its original $6.9 million with the
inclusion of this property as additional security. The closing of the
acquisition is expected to be completed by mid-December and is subject
to standard closing conditions. The purchase price represents a
going-in capitalization rate of approximately 8.25% on in place cash
flows and will be immediately accretive to the REIT.
The property is a newly renovated office building with 23,994 square
feet of gross leasable area and potential expansion of 15,000 square
feet. The property was built in 1977 and renovated in 2011. The
building is 71.8% occupied by Centre De Réadaptation Lisette Dupras
under a long-term lease until August 2021. It has easy access to a
major roadway (highway 40) and is in close proximity to the Lakeshore
General Hospital. The property is situated on approximately 2.0 acres
of land and has 23 outdoor parking spaces.
Following the closing of the acquisition, PROREIT's portfolio will be
comprised of nine commercial properties totalling 396,872 square feet
of gross leasable area. The portfolio of the REIT is diversified by
property type and geography across Eastern Canada, including the
Greater Montréal Area and certain urban centres of Atlantic Canada.
PROREIT (www.proreit.com) is an unincorporated open-ended real estate investment trust
established pursuant to a declaration of trust under the laws of the
Province of Ontario. PROREIT was established in March 2013 to own a
portfolio of diversified commercial real estate properties in Canada,
with a focus on primary and secondary markets in Québec, Atlantic
Canada and Ontario.
This news release may contain forward-looking information within the
meaning of applicable securities legislation. Forward-looking
information is based on a number of assumptions and is subject to a
number of risks and uncertainties, many of which are beyond PROREIT's
control, that could cause actual results and events to differ
materially from those that are disclosed in or implied by such
Forward-looking information contained in this press release includes,
without limitation, statements pertaining to the proposed acquisition
described in this press release. PROREIT's objectives and
forward-looking statements are based on certain assumptions, including
that (i) PROREIT will receive financing on favourable terms; (ii) the
future level of indebtedness of PROREIT and its future growth potential
will remain consistent with PROREIT's current expectations; (iii) there
will be no changes to tax laws adversely affecting PROREIT's financing
capacity or operations; (iv) the impact of the current economic climate
and the current global financial conditions on PROREIT's operations,
including its financing capacity and asset value, will remain
consistent with PROREIT's current expectations; (v) the performance of
PROREIT's investments in Canada will proceed on a basis consistent with
PROREIT's current expectations; and (vi) capital markets will provide
PROREIT with readily available access to equity and/or debt.
The forward-looking statements contained in this news release are
expressly qualified in their entirety by this cautionary statement and
the "Notice Regarding Forward-Looking Statements" in the final short
form prospectus of the REIT dated November 19, 2013, available under
the REIT's profile on SEDAR at www.sedar.com (the "Prospectus"). All forward-looking statements in this press release are made as of
the date of this press release. PROREIT does not undertake to update
any such forward-looking statements whether as a result of new
information, future events or otherwise, except as required by law.
Additional information about these assumptions and risks and
uncertainties is contained in the Prospectus under "Risk Factors".
Neither the TSX Venture Exchange nor its Regulation Services Provider
(as that term is defined in the policies of the TSX Venture Exchange)
accepts responsibility for the adequacy or accuracy of this release.
NOT FOR DISSEMINATION IN THE UNITED STATES OR DISTRIBUTION THROUGH
UNITED STATES NEWS OR WIRE SERVICES.
SOURCE: Pro Real Estate Investment Trust
For further information:
PRO Real Estate Investment Trust
James W. Beckerleg
President and Chief Executive Officer
PRO Real Estate Investment Trust
Gordon G. Lawlor, CA
Chief Financial Officer