/NOT FOR DISTRIBUTION IN THE U.S. OR OVER U.S.
NEWSWIRES/
TORONTO, July 22, 2016 /CNW/ - True North Commercial
Real Estate Investment Trust (the "REIT") (TSX: TNT.UN) is
pleased to announce it has closed the acquisition of an office
property located at 6865 Century Avenue, Mississauga, Ontario (the "Century
Property").
The Century Property is a two-story office building situated on
2.66 acres with a total of approximately 64,000 rentable square
feet and 226 surface parking stalls with direct exposure from
Highway 401 and is well situated with excellent access to Highways
401 and 403. The building has been well-maintained including
upgrades to the exterior façade, windows, paving, elevator,
washrooms and building HVAC systems. With an average lease term of
5.1 years remaining, the property is 100% occupied with two
credit-rated tenants accounting for 75% of the Century Property's
revenue.
Following the acquisition and consistent with the REIT's unique
value proposition, occupancy is 97.7% with an average remaining
lease term of 4.3 years. Government and credit-rated tenants remain
a strategic priority and currently generate approximately 88% of
gross revenue.
The $13.4 million purchase price
for the Century Property was satisfied by: (a) approximately
$4.020 from the previously announced
private placement; and (b) $9.380
million aggregate principal amount of new mortgage financing
with a five-year term and a fixed rate of 2.7%.
About the REIT
The REIT is an unincorporated, open-ended real estate investment
trust established under the laws of the Province of Ontario. The REIT currently owns and operates
a portfolio of 26 commercial properties consisting of approximately
1.5 million square feet in secondary markets across Canada.
The REIT is focused on growing its portfolio principally through
acquisitions across Canada and
such other jurisdictions where opportunities exist.
Additional information concerning the REIT is available at
www.sedar.com or the REIT's website at www.truenorthreit.com.
Forward-looking Statements
Certain statements contained in this press release constitute
forward-looking information within the meaning of Canadian
securities laws. Forward-looking statements are provided for the
purposes of assisting the reader in understanding the REIT's
financial performance, financial position and cash flows as at and
for the periods ended on certain dates and to present information
about management's current expectations and plans relating to the
future including the successful completion of the previously
disclosed acquisition of an office property located in Mississauga, Ontario (the "Mississauga
Property"), and the financial performance of the REIT resulting
from the acquisition of the Mississauga Property, and readers are
cautioned such statements may not be appropriate for other
purposes. Forward-looking information may relate to future results,
performance, achievements, events, prospects or opportunities for
the REIT or the real estate industry and may include statements
regarding the acquisition of the Mississauga Property and the use
of proceeds in the event that the acquisition of the Mississauga
Property is not completed, as well as the financial position,
business strategy, budgets, projected costs, capital expenditures,
financial results, taxes, plans and objectives of or involving the
REIT. In some cases, forward-looking information can be
identified by such terms as "may", "might", "will", "could",
"should", "would", "expect", "plan", "anticipate", "believe",
"intend", "seek", "aim", "estimate", "target", "goal", "project",
"predict", "forecast", "potential", "continue", "likely", or
the negative thereof or other similar expressions concerning
matters that are not historical facts.
Forward-looking statements involve known and unknown risks and
uncertainties, which may be general or specific and which give rise
to the possibility that expectations, forecasts, predictions,
projections or conclusions will not prove to be accurate,
assumptions may not be correct and objectives, strategic goals and
priorities may not be achieved. A variety of factors, many of which
are beyond the REIT's control, affect the operations, performance
and results of the REIT and its business, and could cause actual
results, including those relating to the acquisition of the
Mississauga Property, to differ materially from current
expectations of estimated or anticipated events or results. These
factors include, but are not limited to, risks related to the Units
and risks related to the REIT's Annual Information Form for the
year ended December 31, 2015 and
Management's Discussion and Analysis for the period ended
March 31, 2016 at "Risks and
Uncertainties" and available on the REIT's profile at
www.sedar.com. The reader is cautioned to consider these and
other factors, uncertainties and potential events carefully and not
to put undue reliance on forward-looking statements as there can be
no assurance actual results will be consistent with such
forward-looking statements.
Information contained in forward-looking statements is based
upon certain material assumptions that were applied in drawing a
conclusion or making a forecast or projection, including
management's perceptions of historical trends, current conditions,
expected future developments and the financial performance of the
REIT resulting from the acquisition of the Mississauga Property, as
well as other considerations believed to be appropriate in the
circumstances, including the following: the ability of the REIT to
complete the acquisition of the Mississauga Property and secure
acceptable mortgage financing, the Canadian economy will remain
stable over the next 12 months; inflation will remain relatively
low; interest rates will remain stable; conditions within the real
estate market, including competition for acquisitions, will be
consistent with the current climate; the Canadian capital markets
will provide the REIT with access to equity and/or debt at
reasonable rates when required; Starlight Investments Ltd. will
continue its involvement as asset manager of the REIT in accordance
with its current asset management agreement; and the risks
referenced above, collectively, will not have a material impact on
the REIT. While management considers these assumptions to be
reasonable based on currently available information, they may prove
to be incorrect.
The forward-looking statements made relate only to events or
information as of the date on which the statements are made in this
press release. Except as specifically required by applicable
Canadian law, the REIT undertakes no obligation to update or revise
publicly any forward-looking statements, whether as a result of new
information, future events or otherwise, after the date on which
the statements are made or to reflect the occurrence of
unanticipated events.
SOURCE True North Commercial Real Estate Investment Trust