Agellan Commercial Real Estate Investment Trust Announces Completion of the Disposition of a Portion of Parkway Place
October 02 2017 - 7:55AM
Business Wire
Agellan Commercial Real Estate Investment Trust (the
“REIT”) (TSX:ACR.UN) announced today the closing of its
previously announced disposition of a portion of the REIT’s
Consumers Road office complex in Toronto, Ontario (“Parkway
Place”).
The transaction involved the disposition of the REIT’s
partnership interest in 165 Yorkland LP, a limited partnership
established by the REIT to own a car dealership and corporate head
office at Parkway Place pursuant to a lease agreement with Porsche
Cars Canada Ltd. The REIT disposed of its partnership interest for
approximately $42.2 million before transaction costs, working
capital adjustments and holdbacks. Certain proceeds from the
disposition were used to repay the REIT’s construction facility in
respect of the project and the remaining proceeds will be used by
the REIT to complete the development of a retail and parking
facility servicing Parkway Place.
This transaction is another significant step forward in the
REIT’s strategy of value creation at Parkway Place. Additionally,
the REIT expects the new covered parking facility and retail
amenities to have a meaningful positive impact on the office
component at Parkway Place going forward.
On the retail leasing front, positive leasing momentum continues
as the REIT currently has leases in place and binding offers
covering approximately 21,000 square feet of the approximate 42,000
square feet being constructed. The REIT is in leasing discussions
with several other prospective retail tenants regarding the
remaining available space.
“The REIT remains focused on executing its overall business
strategy,” said Frank Camenzuli, the REIT’s Chief Executive
Officer. “We are excited about the completion of this transaction
and the value created for the REIT’s unitholders. This disposition
further advances the REIT’s strategic initiatives and we expect
further value to be created in the near-term from our Parkway Place
assets.”
Forward-looking information:
This news release contains forward-looking information within
the meaning of applicable securities legislation. Forward-looking
information can be identified by words or expressions including,
but not limited to, “plans”, “expects”, “scheduled”, “estimates”,
“intends”, “anticipates”, “predicts”, ”projects”, “believes”, or
variations of such words and phrases or statements to the effect
that certain actions, events or results “may”, “will”, “could”,
“would”, “should”, “might”, “occur”, “be achieved” or “continue” or
similar expressions. Forward-looking information is necessarily
based on a number of estimates and assumptions that are inherently
subject to significant business, economic and competitive risks,
uncertainties and contingencies, many of which are beyond the
REIT’s control, which could cause actual results to differ
materially from those that are disclosed in or implied by such
forward-looking information. As such, management can give no
assurance that actual results will be consistent with the
forward-looking information. While such assumptions are considered
reasonable by management of the REIT based on the information
currently available, any of these assumptions could prove to be
inaccurate and, as a result, the forward-looking information based
on those assumptions could be incorrect. These risks and
uncertainties include, but are not limited to: the REIT’s future
growth potential; results of operations; future prospects for
additional investment opportunities in Canada and the U.S.,
including access to debt and equity capital at acceptable costs,
the ability to obtain necessary approvals and to minimize any
unexpected costs or liabilities, environmental or otherwise,
relating to any acquisitions or dispositions; demographic and
industry trends remaining unchanged, including occupancy levels,
lease renewals, the exercise of any early termination rights,
rental increases and retailer competition; future levels of the
REIT’s indebtedness remaining at acceptable levels, including its
credit rating; tax laws as currently in effect remaining unchanged,
including applicable specified investment flow-through rules; and
current economic conditions remaining unchanged, including interest
rates and applicable foreign exchange rates. Readers, therefore,
should not place undue reliance on any such forward-looking
statements, as forward-looking information involves significant
risks and uncertainties and should not be read as guarantees of
future performance or results, and will not necessarily be accurate
indications of whether or not the times at or by which such
performance or results will be achieved. All forward-looking
information in this news release speaks only as of the date of this
news release. The REIT does not undertake to update any such
forward-looking information whether as a result of new information,
future events or otherwise, except as required by applicable
securities laws. All forward-looking statements in this news
release are qualified by these cautionary statements. Additional
information about these assumptions and risks and uncertainties is
contained in the REIT’s filings with securities regulators,
including its current annual information form and MD&A.
About Agellan Commercial Real Estate Investment Trust
The REIT is an unincorporated, open-ended real estate investment
trust established pursuant to a declaration of trust under the laws
of the Province of Ontario. The REIT has been created for the
purpose of acquiring and owning industrial, office and retail
properties in select target markets in the United States and
Canada.
The REIT’s 44 properties contain approximately 7.0 million
square feet of gross leasable area, with the REIT’s ownership
interest at approximately 6.7 million square feet. The properties
are located in major urban markets in the United States and
Canada.
Additional information about the REIT is available at
www.agellancommercialreit.com or www.sedar.com.
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Agellan Commercial Real Estate Investment TrustFrank
Camenzuli, CEOTel: 416-593-6800 x226Fax: 416-593-6700