MONTRÉAL, Sept. 27, 2019 /CNW
Telbec/ - PRO Real Estate Investment Trust (TSX: PRV.UN) ("PROREIT"
or the "REIT") is pleased to announce the closing of its previously
announced 100% interest acquisition in a mixed-used industrial
property in Kanata, Ontario, for
$48.5 million before closing costs,
representing a going-in capitalization rate of 6.60%. The property
adds 279,388 square feet of gross leasable area ("GLA") to the
REIT's current portfolio.
"PROREIT is pleased to have completed this last of seven
recently announced property acquisitions. The Kanata property is a prestigious quality asset
that has been institutionally owned and maintained. It increases
our industrial exposure as well as our portfolio concentration in
the attractive Ottawa market,"
said Jim Beckerleg, President and
CEO, PROREIT.
"These recent acquisitions reflect our continued growth as a
high-quality diversified commercial Canadian REIT and have allowed
us to successfully strengthen and broaden our portfolio on an
accretive basis. In addition to increasing our industrial exposure,
these acquisitions have also enhanced the concentration of our
portfolio value within larger urban centres, with approximately
one-third of GLA now located in the compelling Greater Montreal and Ottawa regions," concluded Mr. Beckerleg.
500 Palladium Drive, Ottawa,
Ontario
Located in the Kanata
neighborhood of Ottawa, a high
technology growth node, the property is a state-of-the-art,
multi-tenant flex industrial building featuring prestigious office,
research and lab facilities. The property has a weighted average
lease term of 7.5 years and is 100% occupied by an outstanding
group of tenants operating in the fields of material sciences,
defense, communications and medical technology. It is favorably
located, adjacent to a major retail node offering countless
amenities, shops, restaurants, a movie theatre, and the Terry Fox
transit terminal.
The Kanata region is currently
undergoing major economic growth with numerous new tenants, adding
to continued dynamic growth of existing ones. Technology employers
in the neighbourhood include Cisco, Ericsson, HP, Lockheed Martin,
Microsoft and Apple. Industrial and office vacancies in the area
are at multi-year lows.
The $48.5 million purchase price
was financed by the proceeds from a new $33.9 million 7-year first mortgage at a rate of
3.51%. The balance of the purchase price was satisfied with cash on
hand of $14.6 million from the recent
equity financing.
Strategic Diversification
PROREIT now owns 91 income producing commercial properties
representing approximately 4.4 million square feet of GLA.
PROREIT's portfolio exposure to the Greater Montreal and Ottawa regions now accounts for 34% by real
estate value. Ontario is now
PROREIT's largest provincial market. PROREIT also improved its
portfolio balance with industrial and mixed-used exposure now
representing 64% of total GLA and 46% of total base rent.
About PRO Real Estate Investment Trust
PROREIT (www.proreit.com) is an unincorporated open-ended real
estate investment trust owning a diversified portfolio of 91
commercial properties across Canada representing over 4.4 million square
feet of GLA. Established in 2013, PROREIT is mainly focused on
strong primary and secondary markets in Quebec, Atlantic
Canada and Ontario, with
selective exposure in Western
Canada.
For more information on PROREIT, please visit the REIT's website
at: https://proreit.com.
Forward-Looking Information
This news release contains forward-looking statements within the
meaning of applicable securities legislation. Forward-looking
statements are based on a number of assumptions and are
subject to a number of risks and uncertainties, many of which are
beyond PROREIT's control, that could cause actual results and
events to differ materially from those that are disclosed in or
implied by such forward-looking statements.
Forward-looking statements contained in this press release
include, without limitation, statements pertaining to the impact of
PROREIT's recent acquisitions on its financial performance and the
ability of PROREIT to execute its growth strategies. PROREIT's
objectives and forward-looking statements are based on certain
assumptions, including that (i) PROREIT will receive financing on
favorable terms; (ii) the future level of indebtedness of PROREIT
and its future growth potential will remain consistent with REIT's
current expectations; (iii) there will be no changes to tax laws
adversely affecting PROREIT's financing capacity or operations;
(iv) the impact of the current economic climate and the current
global financial conditions on PROREIT's operations, including its
financing capacity and asset value, will remain consistent with
PROREIT's current expectations; (v) the performance of PROREIT's
investments in Canada will proceed
on a basis consistent with PROREIT's current expectations; and (vi)
capital markets will provide PROREIT with readily available access
to equity and/or debt.
The forward-looking statements contained in this news release
are expressly qualified in their entirety by this cautionary
statement. All forward-looking statements in this press release are
made as of the date of this press release. PROREIT 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 law.
Additional information about these assumptions and risks and
uncertainties is contained under "Risk Factors" in PROREIT's latest
annual information form, which is available on SEDAR at
www.sedar.com.
Neither the TSX nor its Regulation Services Provider (as that
term is defined in the policies of the TSX) accepts responsibility
for the adequacy or accuracy of this release.
SOURCE PROREIT