VANCOUVER, June 11, 2012 /CNW/ - Pure Industrial Real Estate Trust ("PIRET" or the "REIT") (TSXV: AAR.UN) announced today the successful closing of agreements for three fully leased, income producing industrial properties for an aggregate purchase price of $27,600,000.
The REIT successfully closed the previously announced $19,500,000 acquisition of 515 Welham Road in Barrie, Ontario and 12155 - 154th Street in Edmonton, Alberta. The properties have a combined total rentable area of 187,753 square feet and are 100% leased on a fully net basis for 20 years to a leading private designer and manufacturer of specialized heavy equipment attachments for companies dedicated to servicing the construction, resource, forestry and mining industries. PIRET acquired the properties on an all cash basis and funded the acquisition with equity from the bought deal financing that closed on March 1, 2012. PIRET will finance the assets post-closing with long-term debt commensurate with the tenants' lease terms and in an amount representing up to 65% of the purchase price. The assets were acquired at an attractive going-in capitalization rate of 8.00%.
PIRET also successfully closed the previously announced $8,100,000 acquisition of 2030 Notre Dame Avenue in Winnipeg, Manitoba. The property has a total rentable area of 108,238 square feet and is situated on a 6.25 acre site. It is 100% leased on a fully net basis to three quality regional and national tenants. PIRET acquired the property on an all cash basis and funded the acquisition with equity from the bought deal financing that closed on March 1, 2012. The asset was acquired at a going-in capitalization rate of 7.68%. PIRET will assume the existing debt that represents 62% of the purchase price at an interest rate of 3.975% per annum.
After completing these and other previously announced transactions, PIRET's portfolio will total approximately 5.2 million square feet. The REIT's year-to-date acquisitions are summarized below:
|Address||Municipality||GLA (sf)|| Price
|7830 Vantage Way||Delta, BC||46,300||$ 4.5||6.50%||100%|
|925 - 931 Brock Road||Pickering, ON||325,680||22.1||8.00%||93%|
|1345 Redwood Avenue||Winnipeg, BC||112,340||9.7||7.76%||100%|
|2440 Winston Park Drive||Oakville, ON||94,988||10.5||6.75%||100%|
|230 Barmac Drive||North York, ON||118,225||7.3||6.50%||100%|
|2030 Notre Dame Avenue||Winnipeg, MB||108,238||8.1||7.68%||100%|
|515 Welham Road||Barrie, ON||45,170||2.7||8.00%||100%|
|12155 - 154th Street||Edmonton, AB||142,583||16.8||8.00%||100%|
About Pure Industrial Real Estate Trust (PIRET)
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 only publicly traded vehicle in Canada that offers investors exclusive exposure to Canada's industrial asset class.
TSX Venture Exchange - AAR.UN
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