/NOT FOR DISSEMINATION IN THE
UNITED STATES OR DISTRIBUTION THROUGH UNITED
STATES NEWS OR WIRE SERVICES/
MONTRÉAL, QC, April 14, 2021 /CNW
Telbec/ - PRO Real Estate Investment Trust (TSX: PRV.UN)
("PROREIT" or the "REIT") is pleased to announce the closing of its
previously announced private placement of $50 million of trust units (the "Private
Placement").
Pursuant to the Private Placement, 8,264,463 trust units of
PROREIT were issued from treasury on a non-brokered private
placement basis at a price of $6.05
per unit to Collingwood Investments Incorporated, a member of the
Bragg Group of Companies, from Nova
Scotia. As a result of the Private Placement, Collingwood
Investments Incorporated, together with a related party, has a
voting and economic interest of approximately 19.6% in PROREIT.
Collingwood Investments Incorporated received a capital commitment
fee equal to 3% of the gross proceeds of the Private Placement upon
closing.
PROREIT intends to use the net proceeds from the Private
Placement (i) to partially fund its proposed acquisition of a 100%
interest in 12 industrial properties, including three properties in
Ottawa, Ontario, representing
283,000 square feet of gross leasable area ("GLA") and nine
properties in Winnipeg, Manitoba,
representing 288,000 square feet of GLA (collectively, the
"Acquisitions"), for an aggregate purchase price of approximately
$86.8 million (excluding closing
costs), (ii) to repay certain indebtedness which may be
subsequently redrawn, and (iii) the balance if any to fund future
acquisitions and for general business and working capital
purposes.
The Acquisitions are subject to customary closing conditions and
are expected to close in the second quarter of 2021. For more
information on the Acquisitions and the intended use of the net
proceeds from the Private Placement, please refer to the
March 15, 2021 press release of
PROREIT.
About PRO Real Estate Investment Trust
PROREIT is an unincorporated open-ended real estate investment
trust established pursuant to a declaration of trust under the laws
of the Province of Ontario.
PROREIT was established in March 2013
to own a portfolio of diversified commercial real estate properties
in Canada, with a focus on primary
and secondary markets in Québec, Atlantic
Canada and Ontario with
selective expansion into Western
Canada. PROREIT's portfolio is diversified by property type
and geography.
For more information on PROREIT, please visit the 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 is 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 closing
of the Acquisitions and the use of the net proceeds of the Private
Placement. 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