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VANCOUVER, May 7, 2013 /CNW/ - Pure Industrial Real Estate Trust ("PIRET" or the "REIT") (TSX: AAR.UN) announced today that it has entered into agreements to acquire two single-tenant and two multi-tenant industrial properties in Calgary, Alberta for a total purchase price of $72 million (the "Calgary Portfolio"). The purchase price represents approximately $100 per square foot and a going-in capitalization rate of approximately 5.91%.
The Calgary Portfolio consists of four properties having a total rentable area of 720,434 square feet. The portfolio is 93% leased to high quality multinational, national and regional tenants on a fully net basis with a weighted average rent of $5.85 per square foot. PIRET expects to fund the acquisition with the balance of the proceeds from the REIT's bought deal offering of subscription receipts which closed on May 1, 2013 and with the proceeds of new first mortgage financing in the amount of approximately $46.8 million, having an anticipated interest rate of 3.75%, and with working capital. The acquisition is expected to close in June, 2013.
After the completion of the acquisition of the Calgary Portfolio and of the portfolio of 59 properties located in the Greater Toronto Area and Southwestern Ontario which was announced in April 11, 2013 and which is expected to close on May 15, 2013, PIRET's portfolio will total 160 properties and approximately 12.56 million square feet.
About Pure Industrial Real Estate Trust
PIRET is an unincorporated, open-ended investment trust established for the purposes of acquiring, owning and operating a diversified portfolio of income-producing industrial properties in primary markets across Canada. PIRET focuses exclusively on investing in industrial properties and is the largest internally managed publicly traded REIT in Canada that offers investors exclusive exposure to Canada's industrial asset class.
This press release contains forward looking statements that reflect the current expectations of the REIT about its future results, performance, prospects and opportunities. Readers are cautioned not to place undue reliance on forward looking information. The REIT has tried to identify these forward looking statements by using words such as "may", "will", "should" "expect", "anticipate", "believe", "intend", "plan", "estimate", "potentially" and similar expressions. By its nature, such forward looking information necessarily involves known and unknown risks and uncertainties that may cause the REIT's actual results, performance, prospects and opportunities in future periods to differ materially from those expressed or implied by such forward looking statements. These risks and uncertainties include, among other things, risks related to: the anticipated closing of the acquisition of the properties described; real property ownership; tenant risks; fixed costs; liquidity; financing risks; limit on activities; availability of cash flow; availability of growth opportunities; access to capital; interest rate fluctuations; reliance on anchor tenants; competition; land leases; general uninsured losses; environmental matters; possibility of unitholder liability; tax-related risk factors; potential conflicts of interest; dilution; specific lease considerations; and nature of investment. There can be no assurance that the expectations of the REIT will prove to be correct. The REIT assumes no obligation to update or revise any such forward looking statements to reflect new events or circumstances.
Although the forward-looking statements contained in this press release are based upon what management believes are reasonable assumptions, there can be no assurance that actual results will be consistent with these forward-looking statements. Certain assumptions made in preparing forward-looking information and the REIT's objectives include the assumption that the acquisition will be completed on the terms and basis set out herein, that the REIT will obtain new first mortgage financing in the amount of approximately $46.8 million prior to the completion of the Acquisition, that the acquisition of the 59 property portfolio in the Greater Toronto Area and Southwestern Ontario will close on May 15, 2013, that the Canadian economy will remain stable in 2013 and that inflation will remain relatively low. Management has also assumed that interest rates will remain stable in 2013, that conditions within the real estate market, including competition for acquisitions, will be consistent with the current climate and that capital markets will continue to provide the REIT with ready access to equity and/or debt.
You should not place undue importance on forward-looking information and should not rely upon this information as of any other date. While the REIT may elect to, the REIT is under no obligation and does not undertake to update this information at any particular time, except as required by law.
THE TORONTO STOCK EXCHANGE HAS NOT REVIEWED AND DOES NOT ACCEPT RESPONSIBILITY FOR THE ADEQUACY OR THE ACCURACY OF THIS RELEASE.
SOURCE: Pure Industrial Real Estate Trust (PIRET)
For further information:
Director of Investor Relations