TORONTO, June 18, 2014 /CNW/ - Welsh Property Trust, LLC ("Welsh") announced today that it has acquired ownership of an additional 2,165,605 Class B partnership units ("Class B Units") of WPT Industrial, LP (the "Partnership"), the operating subsidiary of WPT Industrial Real Estate Investment Trust (the "REIT"), representing approximately 16.6% of the Class B Units issued and outstanding prior to the acquisition and an approximate 7.4% effective interest in the REIT (assuming all Class B Units are redeemed for trust units of the REIT ("Units"), but otherwise on a non-diluted basis) after giving effect to the acquisition. These additional Class B Units were acquired pursuant to the previously-announced indirect acquisition by the REIT (through the Partnership) of an industrial property located in Shepherdsville, Kentucky (the "Property") from Welsh completed earlier today.
Each Class B Unit is redeemable by the holder thereof for cash or Units (on a one-for-one basis subject to customary anti-dilution adjustments), as determined by the general partner of the Partnership in its sole discretion. The Class B Units are economically equivalent to Units and are entitled to distributions of cash from the Partnership equal to the cash distributions paid to holders of the Units by the REIT.
After giving effect to this purchase, Welsh now directly and indirectly owns 752,700 Units (approximately 5.3% of the issued and outstanding Units) and 15,225,314 Class B Units (100% of the issued and outstanding Class B Units), representing an approximate 54.3% effective interest in the REIT (assuming all Class B Units are redeemed for Units, but otherwise on a non-diluted basis).
The number of Class B Units issued to Welsh in connection with the acquisition of the Property was determined by applying a price of US$9.42 per Class B Unit, which is the 20-trading day volume-weighted average price for the Units for the period immediately prior to April 14, 2014 (the date on which the acquisition of the Property was announced by the REIT). On April 14, 2014, the noon rate of exchange posted by the Bank of Canada for the conversion of U.S. dollars into Canadian dollars was US$1.00 equals Cdn$1.097. Applying this noon rate, each Class B Unit was valued at Cdn$10.33.
Welsh acquired the 2,165,605 Class B Units as part of the consideration for the contribution of its indirect interest in the Property to the Partnership. Welsh's position may be increased (whether pursuant to property acquisition transactions or otherwise) or decreased in the future as considered appropriate in light of investment criteria, market conditions and other factors or circumstances and in accordance with the provisions of applicable securities legislation.
SOURCE: WPT Industrial Real Estate Investment Trust
For further information: Further information (including a copy of the report to be filed with Canadian securities regulators in connection with this transaction) can be obtained by contacting: Scott Frederiksen, Chief Executive Officer, Welsh Property Trust, LLC, 4350 Baker Road, Suite 400, Minnetonka, Minnesota, United States, 55343, (952) 897-7737