Only 13 disclaimed Priszm KFC locations left to lease out of original 43 sites
TORONTO, March 20, 2012 /CNW/ - Scott's Real Estate Investment Trust (TSX: SRQ.UN) ("Scott's REIT") today announced the following:
- Closing of the previously announced first mortgage in Atlantic Canada for $8.5 million;
- Repayment of $8.4 million of the original IPO mortgage; and
- Two new leases related to properties previously disclaimed by Priszm, increasing total re-leased locations to 30 out of 43 sites
Close of the $8.5 Million Atlantic Canada Mortgage and Re-payment of a Portion of the IPO Loan
Scott's REIT today closed the previously announced first mortgage with First National Financial LP in the amount of $8.5 million. The mortgage is secured by the majority of the REIT's properties located in New Brunswick and Nova Scotia, the primary tenant of which is FMI Atlantic Inc. operating as KFC restaurants. The mortgage has a term of five years, is amortized over a 25-year period, and bears an interest rate of 4.95 per cent.
The net proceeds from the mortgage were used to pay down $8.4 million of the IPO loan. As a result of this repayment, the current outstanding balance of the IPO loan is $23.6 million, with all other terms of the loan remaining unchanged. The IPO loan matures on February 1, 2013.
Scott's REIT has completed two additional new leases since March 7, 2012 for sites disclaimed and previously occupied by Priszm, including one site in Quebec for a 10-year term and one site in Nova Scotia for a five-year term. Including these two new leases, Scott's REIT has now leased 30 of the total 43 disclaimed sites, or 68.7 percent of the total disclaimed GLA.
About Scott's Real Estate Investment Trust
Scott's REIT (TSX: SRQ.UN) is Canada's premier small-box retail property owner with 229 properties in eight provinces across Canada. Scott's REIT's properties are well located and geographically diverse across Canada with the majority of all properties containing long-term quadruple net leases. To find out more about Scott's Real Estate Investment Trust (TSX: SRQ.UN), visit our website at www.scottsreit.com.
This document contains certain information that may constitute forward-looking information within the meaning of securities laws. In some cases, forward-looking information can be identified by the use of terms such as "may", "will", "should", "expect", "plan", "anticipate", "believe", "intend", "estimate", "predict", "potential", "continue" or other similar expressions concerning matters that are not historical facts. Forward-looking information may relate to management's future outlook and anticipated events or results, and may include statements or information regarding future growth opportunities and potential and expected cash distributions or cash distribution levels. In particular, information regarding the REIT's monthly cash distributions and information relating to the impact of the REIT's recent acquisitions on annual revenues and interest expense is forward-looking information. Forward-looking information is based on certain factors and assumptions regarding, among other things, occupancy rates, property expense and capital expenditures. While the REIT considers these assumptions to be reasonable based on information currently available to it, they may prove to be incorrect. Forward looking-information is subject to certain factors, including risks and uncertainties, which could cause actual results to differ materially from what is currently expected. Such factors include risks relating to the REIT's reliance on Priszm LP, the REIT's second largest tenant, risks associated with investment in real property, competition, reliance on key personnel, financing and refinancing risks, environmental matters, tenant risks, risks related to current economic conditions and other risk factors more particularly described in the REIT's Annual Information Form for the year ended December 31, 2011. You should not place undue importance on forward-looking information and should not rely upon this information as of any other date. Other than as required by applicable Canadian securities law, the REIT does not undertake to update this information at any particular time. Additional information identifying risks and uncertainties is contained in Scott's REIT filings with the Canadian securities regulators, available at www.sedar.com.
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