VANCOUVER, Dec. 12, 2014 /CNW/ - Pure Industrial Real Estate Trust ("PIRET") (TSX: AAR.UN) today announced the successful closing of a western Canadian portfolio (the "Western Portfolio") and one property in Ontario for an aggregate purchase price of $55,000,000.
The Western Portfolio consists of three logistics properties located in Edmonton, Calgary and Winnipeg that comprise approximately 137,880 square feet of gross leasable area ("GLA") and are 100% leased to two national and international logistics firms. Constructed in 2007 and 2008 the facilities are located on approximately 24 acres of land and have a total of 120 shipping doors. In addition, the Western Portfolio includes approximately 9.6 acres of developable excess land in Edmonton and 3.9 acres in Calgary. PIRET acquired the portfolio and excess land at a going-in capitalization rate of 7.1%.
The Ontario property located at 125 Maple Grove Road is a single-tenant industrial building comprising approximately 136,780 square feet of GLA on a 12.5 acre lot, and is 100% leased to a national tenant for a remaining lease term of five years. Constructed in 2001 and expanded in 2003, the building is improved with 45 shipping doors and has the capability to double its door count. PIRET acquired the property at a going-in capitalization rate of 6.84%.
The acquisitions were funded by existing working capital and PIRET expects to obtain first mortgage financing totaling approximately $21,000,000 for a term of 5 years at an interest rate of no more than 3.7% per annum.
After completing the acquisition, PIRET's portfolio will total 174 properties with GLA of approximately 16.2 million square feet.
Kevan Gorrie, President & co-CEO, commented on the acquisition, "These acquisitions provide strong cash flow and significant value-add potential through development. Furthermore, we have accretively redeployed the net proceeds from our co-ownership transaction announced on October 30th of this year, and we continue to maintain an adequate level of working capital that affords the flexibility to execute on future strategic growth opportunities."
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 PIRET intends to obtain first mortgage financing of approximatley $21,000,000 for a term of 5 years at an interest rate of no more thatn 3.7% per annum. The forward-looking statements contained in this news release are based on certain key expectations and assumptions made by PIRET, including: expectations and assumptions concerning receipt of required regulatory approvals and the satisfaction of other conditions to the completion of the property acquistions.
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 acquisitions, 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)
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