VANCOUVER, Oct. 30, 2014 /CNW/ - Pure Industrial Real Estate Trust ("PIRET") (TSX: AAR.UN) today announced that it has entered into an co-ownership agreement to sell a 75% interest in eight industrial properties (the "Portfolio") located in Ontario and Quebec to a major Canadian institution for approximately $60.9 million. PIRET will receive approximately $30.0 million of net proceeds in cash after standard adjustments and the co-owner's assumption of the existing debt.
The sale of PIRET's 75% interest in the Portfolio (seven properties in Ontario, one in Quebec) will result in a realized gain of approximately $5.3 million. PIRET will continue to provide full property management, asset management and leasing services to the portfolio that will enhance investor returns through increased fee revenue. The transaction closed on October 30, 2014, and the proceeds will be used to fund future acquisitions and development projects.
"By leveraging the quality of our portfolio and management platform, this transaction will provide PIRET with greater capital flexibility to achieve our strategic growth plans aimed at maximizing value for our unitholders" said Kevan Gorrie, Co-Chief Executive Officer of PIRET.
About Pure Industrial Real Estate Trust
PIRET is an unincorporated, open-ended investment trust that owns and operates a diversified portfolio of income-producing industrial properties in leading markets. PIRET is an internally managed REIT that focuses exclusively on investing in industrial properties.
Certain statements contained in this press release may constitute forward-looking statements. Forward-looking statements are often, but not always, identified by the use of words such as "anticipate", "plan", "expect", "may", "will", "intend", "should", and similar expressions. These statements involve known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such forward-looking statements. Forward-looking statements in this news release include that: (i) PIRET will continue to provide full property management, asset management and leasing services to the portfolio that will enhance investor returns through increased fee revenue.
Although PIRET believes that the expectations and assumptions on which the forward-looking statements are based are reasonable, undue reliance should not be placed on the forward-looking statements because PIRET can give no assurance that they will prove to be correct. Since forward-looking statements address future events and conditions, by their very nature they involve inherent risks and uncertainties. Actual results could differ materially from those currently anticipated due to a number of factors and risks. These include, but are not limited to, the failure to obtain necessary regulatory approvals or satisfy the conditions to closing the property dispositions, competitive factors in the industries in which PIRET operates, prevailing economic conditions, and other factors, many of which are beyond the control of the PIRET.
The forward-looking statements contained in this press release represent PIRET's expectations as of the date hereof, and are subject to change after such date. PIRET disclaims any intention or obligation to update or revise any forward-looking statements whether as a result of new information, future events or otherwise, except as required under applicable securities regulations.
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: Andrew Greig, Director of Investor Relations, Pure Industrial Real Estate Trust, Suite 910, 925 West Georgia Street, Vancouver, BC V6C 3L2, Phone: (604) 398-2836 or (888) 681-5959, E-mail: [email protected], www.piret.ca, Toronto Stock Exchange - AAR.UN