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MONTRÉAL, Oct. 6, 2021 /CNW/ - PRO
Real Estate Investment Trust ("PROREIT" or the
"REIT") (TSX: PRV.UN) is pleased to announce the
closing of its previously announced public offering of trust units
of the REIT (the "Units") on a bought deal basis (the
"Offering"). Pursuant to the Offering, the REIT issued
10,074,000 Units at a price of $6.85
per Unit (the "Offering Price") for total gross proceeds of
$69,006,900, including 1,314,000
Units issued pursuant to the full exercise of the over-allotment
option. Concurrently with the closing of the Offering, the REIT
completed a non-brokered private placement pursuant to which it
issued 2,085,744 Units at the Offering Price to Collingwood
Investments Incorporated, a member of the Bragg Group of Companies,
from Nova Scotia (the "Private
Placement"), for total gross proceeds of $14,287,346.
The Offering was conducted through a syndicate of underwriters
including TD Securities Inc. and Scotiabank as joint
bookrunners and Canaccord Genuity Corp., collectively as co-lead
underwriters, as well as BMO Nesbitt Burns Inc., CIBC World Markets
Inc., National Bank Financial Inc., iA Private Wealth Inc., Raymond
James Ltd., Haywood Securities Inc., Laurentian Bank Securities
Inc. and Leede Jones Gable Inc.
The Units issued under the Offering were issued pursuant to a
prospectus supplement dated September 29,
2021 (the "Prospectus Supplement") to the REIT's base
shelf prospectus dated July 13, 2021
(the "Base Shelf Prospectus"), filed with securities
regulatory authorities in all provinces and territories of
Canada. A copy of the Prospectus
Supplement and the Base Shelf Prospectus is available under the
REIT's profile on SEDAR at www.sedar.com.
As a result of the closing of the Offering and the Private
Placement, Collingwood Investments Incorporated has a voting and
economic interest of approximately 18.81% in PROREIT, or
approximately 19.11% together with one of its related parties.
The REIT intends to use the net proceeds from the Offering and
the Private Placement to partially fund the Acquisitions (as
defined below), to repay certain indebtedness which may be
subsequently redrawn, and the balance if any to fund future
acquisitions and for general business and working capital
purposes.
Property Acquisitions
The REIT announced on September 27,
2021 that it had entered into agreements to acquire a 100%
interest in 15 industrial properties located in Atlantic Canada representing 1,074,269 square
feet of gross leasable area ("GLA") and one industrial
property in Winnipeg, Manitoba
representing 106,737 square feet of GLA (collectively, the
"Acquisitions") for an aggregate purchase price of
$163.2 million (excluding closing
costs), representing an implied weighted average capitalization
rate of 5.9% and approximately $138
per square foot.
Upon completion of the Acquisitions, the REIT's portfolio will
be comprised of 120 income producing commercial properties
representing approximately 6.6 million square feet of GLA and
$928 million of total assets with a
weighted average lease term of 4.5 years. The addition of the
industrial properties will improve portfolio balance by increasing
PROREIT's portfolio exposure to the industrial segment to 78% by
GLA and 63% by base rent, pro forma the Acquisitions.
For more information on the Offering, the Private Placement,
PROREIT's intended use of the net proceeds of the Offering and the
Private Placement, and the Acquisitions, please refer to the
Prospectus Supplement. The Acquisitions are subject to customary
closing conditions, including with respect to regulatory approvals,
and are expected to close in the fourth quarter of 2021.
The securities have not and will not be registered under the
United States Securities Act of 1933, as amended (the "U.S.
Securities Act"), or any U.S. State securities laws and may not
be offered or sold, directly or indirectly, within the United States or its territories or
possessions or to or for the account of any U.S. person (as defined
in Regulation S under the U.S. Securities Act) other than pursuant
to an available exemption from the registration requirements of the
U.S. Securities Act. This press release does not constitute an
offer to sell or a solicitation of an offer to buy any such
securities within the United
States, or its territories or possessions, or to or for the
account of any U.S. person.
Forward-Looking Statements
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 closing
of the Acquisitions, the use of the net proceeds of the Offering
and the Private Placement, the impact of the Acquisitions on the
REIT's future performance, the value of the REIT's assets following
the closing of the transaction, and the ability of the REIT to
executive its growth strategy. PROREIT's objectives and
forward-looking statements are based on certain assumptions,
including management's perceptions of historical trends, current
conditions and expected future developments.
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 in the Prospectus Supplement, both of
which are available under the REIT's profile on SEDAR at
www.sedar.com.
About PROREIT
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 REIT's website
at: https://proreit.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