TORONTO, Aug. 4, 2017 /CNW/ - A subsidiary of Strathallen Capital Corp. ("Strathallen") announced today that it has entered into an agreement of purchase and sale to acquire a portfolio of retail properties from a subsidiary of OneREIT for a purchase price of $703.5 million, plus certain capital expenditures and leasing costs and commissions relating to such properties for cash consideration, net of the assumption of existing mortgage debt relating to such properties, and subject to working capital and other adjustments (the "Strathallen Acquisition"). The Strathallen Acquisition will be funded by Strathallen Retail Property Fund IV and an institutional investor.
The portfolio is comprised of 44 properties, 4.6 million square feet of retail space representing diversity of geography, scale and tenants. Primary uses of the portfolio include grocery, drug stores and services.
Brian Spence, Chairman of Strathallen notes: "it is gratifying that our investors and lenders have been so supportive in the pursuit of such a complex investment opportunity". Laetitia Pacaud, President, stated: "the acquisition of this portfolio will be transformational for Strathallen. Our strategic plan for realization of value from the properties will entail focus of Strathallen's unique approach, national platform and the proven skills of experienced personnel".
The Strathallen Acquisition is part of a larger transaction announced by OneREIT today whereby OneREIT will be selling all of its assets and liabilities to Strathallen and Smart Real Estate Investment Trust ("SmartREIT") and redeeming all of its publicly traded units (the "Transaction"). Closing of the Transaction is subject to customary conditions, including certain OneREIT securityholder approvals, regulatory approvals (including under the Competition Act (Canada)), court approval (since the Transaction is to be implemented by way of a plan of arrangement), required mortgagee consents and other customary closing conditions. Assuming the requisite approvals are received and other conditions are met or waived, the Transaction is expected to be completed in 2017.
Stikeman Elliott LLP is acting as legal advisor to Strathallen.
Strathallen is a fully integrated Canadian real estate management company. The Transaction will increase assets under management to approximately $1.7 billion and 8.9 million square feet. Founded in 2003 by seasoned real estate executives, Strathallen provides asset management, property management and strategic advisory services to institutional and high net worth investors. The company currently manages and operates four private closed-end funds, with the mandate to strategically acquire and dispose of quality retail investments and deliver industry leading risk-adjusted returns. Strathallen provides investors with confidence through co-investing and incentive fee arrangements. The company is supported by; in-house asset management, property management, financial, leasing and development teams. Strathallen specializes in creating value in opportunistic property investments on behalf of institutional clients.
SOURCE Strathallen Capital
For further information: Laetitia Pacaud, President, Tel: (416) 646-7356, E-mail: [email protected]