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- Agreement now binding for eight previously announced
institutional-quality industrial assets comprising 250,000 square
feet of GLA in Winnipeg,
Manitoba
MONTRÉAL, June 15, 2021 /CNW
Telbec/ - PRO Real Estate Investment Trust (TSX: PRV.UN) ("PROREIT"
or the "REIT") today announced that it has waived conditions on its
previously announced conditional purchase agreement for a 100%
interest in eight light industrial buildings in Winnipeg. Together, the properties comprise
250,000 square feet of gross leasable area ("GLA") and carry an
aggregate purchase price of $32.3 million before closing costs,
representing a going in capitalization rate of approximately
6.1%.
"Today's announcement is one more step in successfully executing
on the nine previously announced Winnipeg transactions. Having recently
completed one Winnipeg purchase in
June, this binding agreement for the remaining eight properties is
scheduled to close in the coming weeks," said James W. Beckerleg, President and Chief
Executive Officer of PROREIT.
"Upon completion, our Winnipeg
portfolio will be comprised of 15 industrial properties,
representing 525,000 square feet of GLA, in a city that has shown
remarkable stability over the past decade," concluded Mr.
Beckerleg
Winnipeg Properties
The institutionally owned and managed small bay industrial
buildings are located in the St. Boniface Industrial Park in
East Winnipeg and represent
250,000 square feet of GLA. They feature clear heights of 14 to 21
feet and are 97% leased with a weighted average lease term of
approximately three years.
Property
Address
|
GLA (Square
Feet)
|
70-104 Durand
Road
|
72,816
|
45 Beghin
Avenue
|
43,164
|
214 De Baets
Street
|
39,808
|
141-159 De Baets
Street
|
33,225
|
115-133 De Baets
Street
|
20,800
|
36-48 Durand
Road
|
15,985
|
32 Beghin
Avenue
|
12,524
|
30 Durand
Raod
|
11,760
|
|
250,082
|
The $32.3 million purchase price
will be substantially financed from the proceeds of a new
$20.7 million 5-year first
mortgage. The balance of the purchase price will be satisfied with
cash on hand and operating facilities of $11.6 million available as a result of the recent
$50.0 million private placement of
equity. Closing is expected in the next few weeks and is
subject to customary conditions.
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 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 execution
by PROREIT of its growth strategy and the anticipated closing of
the acquisition of the Winnipeg
properties. PROREIT's objectives and forward-looking statements are
based on certain assumptions, including that (i) PROREIT will
receive financing on favourable terms; (ii) the future level of
indebtedness of PROREIT and its future growth potential will remain
consistent with the 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 and "Risk and Uncertainties" in PROREIT's
management's discussion and analysis for the three month period
ended March 31, 2021, which are
available under PROREIT's profile 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