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TORONTO, Feb. 7, 2019 /CNW/ - True North Commercial Real Estate Investment Trust (TSX: TNT.UN) (the "REIT") is pleased to announce it has closed the acquisition of a 107,066 square foot office property located at 360 Laurier Avenue West, Ottawa, Ontario (the "Ottawa Property").
The Ottawa Property is an 11-storey high quality office building that occupies a strategic location in Ottawa's Central Business District within the National Capital Region. The Ottawa Property also enjoys significant frontage exposure on one of Ottawa's key downtown thoroughfares, including access to public transportation, entertainment venues and major retail hubs. The Ottawa Property is certified as BOMA BEST® Silver and is expected to receive LEED® EB Gold certification in early 2019. With a remaining lease term of 3.5 years, the building is 100% occupied with the Federal Government of Canada occupying 95% of the building's gross rentable area.
"As we continue to strengthen our position as a pure play office REIT, we are pleased to redeploy the proceeds from the recent sale of our two industrial properties into an office property in Ottawa occupied by one of the highest quality tenant covenants available in the Canadian marketplace", said Daniel Drimmer, the REIT's President and Chief Executive Officer. "The property is adjacent to 340 Laurier Avenue West which is currently owned by the REIT and this acquisition will help solidify our footprint in Ottawa's central business district and allow us to capitalize on operating synergies and efficiencies."
The $24.5 million purchase price, exclusive of closing costs, was satisfied with the proceeds from the recent sale of 63 Innovation Drive, Hamilton, Ontario and 1035 Industrial Road, Waterloo, Ontario, and first mortgage financing in the amount of approximately $17.0 million, with an estimated annual interest rate of 3.8% for a 5 year term.
About the REIT
The REIT is an unincorporated, open-ended real estate investment trust established under the laws of the Province of Ontario. The REIT currently owns and operates a portfolio of 46 commercial properties consisting of approximately 3.73 million square feet in urban and select strategic secondary markets across Canada. The REIT is focused on growing its portfolio principally through acquisitions across Canada and such other jurisdictions where opportunities exist.
For complete financial statements and management's discussion and analysis for the period, and any other information relating to the REIT, please visit www.sedar.com or the REIT's website at www.truenorthreit.com.
SOURCE True North Commercial Real Estate Investment Trust
For further information: Daniel Drimmer, President and Chief Executive Officer, (416) 234-8444; or Tracy Sherren, Chief Financial Officer, (416) 234-8444