Granite REIT Extends and Upsizes Credit Facility to $1.0 Billion and Announces a New $86M U.S. Acquisition
March 31 2021 - 4:07PM
Business Wire
Granite Real Estate Investment Trust (“Granite” or the “REIT”)
(TSX: GRT.UN / NYSE: GRP.U) announced today that it has extended
the maturity date of its credit facility to March 2026 and
increased its borrowing capacity under the credit facility to $1.0
billion. In addition, Granite announced that it acquired an
income-producing property in the United States comprising 1.0
million square feet at a purchase price of C$85.9 million.
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3090 State Highway 42, Locust Grove,
Georgia, USA (Photo: Business Wire)
Credit Facility
Today, Granite amended its existing unsecured revolving credit
facility agreement to extend the maturity date for a new five-year
term to March 31, 2026. In addition, the facility’s limit has
doubled to $1.0 billion. Draws on the facility are available by way
of Canadian dollar, US dollar or Euro denominated loans or Canadian
dollar or US dollar denominated letters of credit. The credit
facility provides Granite the ability to increase the amount of the
commitment by an additional aggregate principal amount of up to
$500.0 million with the consent of the participating lenders.
Interest on drawn amounts is calculated based on an applicable
margin determined by reference to the external credit ratings of
the REIT and Granite REIT Inc., as is a commitment fee in respect
of undrawn amounts. As at today, $1.0 million in letters of credit
are issued under the facility, Granite has no other amounts drawn
under the credit facility which, combined with approximately $480
million cash on hand, represents approximately $1.5 billion in
available liquidity.
US Acquisition
On March 12, 2021, Granite acquired 3090 State Highway 42, a 1.0
million square foot, 40’ clear height modern warehouse distribution
facility situated on 85.6 acres in the greater Atlanta region, for
C$85.9 million (US $68.9 million). The state-of-the-art facility
was completed in 2020 and is 75% leased to Radial, Inc. for a
remaining lease term of 7.6 years, subject to contractual annual
rent escalations. The property was acquired at an in-going yield of
3.8% and estimated stabilized yield of 5.0% upon lease-up of the
existing 250,000 square feet of vacant space. The site also
contains excess land to accommodate an expansion of approximately
0.3 million square feet. The property is well positioned in
Atlanta’s Henry County sub-market within Atlanta’s I-75 logistical
thoroughfare, in close proximity to Hartsfield-Jackson Atlanta
International Airport, the Norfolk Southern Intermodal Yard and
direct access to the Port of Savannah.
ABOUT GRANITE
Granite is a Canadian-based REIT engaged in the acquisition,
development, ownership and management of logistics, warehouse and
industrial properties in North America and Europe. Granite owns 115
investment properties representing approximately 50.4 million of
leasable area.
OTHER INFORMATION
Copies of financial data and other publicly filed documents
about Granite are available through the internet on the Canadian
Securities Administrators’ System for Electronic Document Analysis
and Retrieval (SEDAR) which can be accessed at www.sedar.com and on
the United States Securities and Exchange Commission’s Electronic
Data Gathering, Analysis and Retrieval System (EDGAR) which can be
accessed at www.sec.gov. For further information, please see our
website at www.granitereit.com or contact Teresa Neto, Chief
Financial Officer, at 647-925-7560 or Andrea Sanelli, Manager,
Legal & Investor Services, at 647-925-7504.
FORWARD LOOKING
STATEMENTS
This press release may contain statements that, to the extent
they are not recitations of historical fact, constitute
“forward-looking statements” or “forward-looking information”
within the meaning of applicable securities legislation, including
the United States Securities Act of 1933, as amended, the United
States Securities Exchange Act of 1934, as amended, and applicable
Canadian securities legislation. Forward-looking statements and
forward-looking information may include, among others, statements
regarding Granite’s expectations with respect to the leasing of the
vacant space and the expected stabilized yield at the property in
Locust Grove, Georgia, or expectations regarding the future
expansion of such property, Granite’s plans, goals, strategies,
intentions, beliefs, estimates, costs, objectives, economic
performance, expectations, or foresight or the assumptions
underlying any of the foregoing. Words such as “may”, “would”,
“could”, “will”, “likely”, “expect”, “anticipate”, “believe”,
“intend”, “plan”, “forecast”, “project”, “estimate”, “seek”,
“objective” and similar expressions are used to identify
forward-looking statements and forward-looking information.
Forward-looking statements and forward-looking information should
not be read as guarantees of events, performance or results and
will not necessarily be accurate indications of whether or the
times at or by which such events, performance or results will be
achieved. Undue reliance should not be placed on such statements.
Forward-looking statements and forward-looking information are
based on information available at the time and/or management’s good
faith assumptions and analyses made in light of its perception of
historical trends, current conditions and expected future
developments, as well as other factors management believes are
appropriate in the circumstances, and are subject to known and
unknown risks, uncertainties and other unpredictable factors, many
of which are beyond Granite’s control, that could cause actual
events or results to differ materially from such forward-looking
statements and forward-looking information. Important factors that
could cause such differences include, but are not limited to, the
risks set forth in the annual information form of Granite Real
Estate Investment Trust and Granite REIT Inc. dated March 3, 2021
(the “Annual Information Form”). The “Risk Factors” section of the
Annual Information Form also contains information about the
material factors or assumptions underlying such forward-looking
statements and forward-looking information. Forward-looking
statements and forward-looking information speak only as of the
date the statements and information were made and unless otherwise
required by applicable securities laws, Granite expressly disclaims
any intention and undertakes no obligation to update or revise any
forward-looking statements or forward-looking information contained
in this press release to reflect subsequent information, events or
circumstances or otherwise.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20210331005993/en/
Teresa Neto, Chief Financial Officer, at 647-925-7560 or Andrea
Sanelli, Manager, Legal & Investor Services, at
647-925-7504.
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