Partners REIT Expands Presence in Quebec
July 18 2011 - 6:53PM
Marketwired
Partners Real Estate Investment Trust (TSX VENTURE: PAR.UN)
("Partners REIT") announced today that it would be acquiring Place
Desormeaux, a 250,000 square foot enclosed shopping centre in
Longueuil, Quebec on the south shore of the Greater Montreal
Region. The property is well situated in a growing urban market and
anchored by high quality necessity-based retailers including a
Super C grocery store, Pharmaprix, Zellers, Dollarama, the SAAQ,
National Bank and Bank of Montreal. It is currently 98.0% occupied.
The centre also offers the opportunity to enhance income through
the expansion of existing tenants and the development of three new
retail pad sites. The property currently generates Net Operating
Income of approximately $2.4 million on an annualized basis and
management expects it will generate approximately $600,000 in
incremental annualized Funds From Operations.
Partners REIT will pay approximately $32.2 million for the
property and will incur approximately $3.6 million in acquisition
and capital improvement costs. The aggregate outlay of funds will
be covered by the placement of a $23.0 million mortgage bearing
interest at 210 basis points over the five-year Government of
Canada bond rate with a 58-month term or currently approximately
4.25%. The balance of the purchase price will be funded from the
REIT's lines of credits. The closing of the transaction is expected
on or before August 8, 2011.
"We have been very active growing our portfolio since we took
over management of the REIT last June with the acquisition of 9
retail centres adding a total of approximately 500,000 square feet
to the portfolio," commented Adam Gant, Chief Executive Officer.
"Looking ahead, we continue to evaluate the potential acquisition
of a number of additional high quality retail centres consistent
with our strategy to strengthen, expand and further diversify our
portfolio."
About Partners REIT
Partners REIT is a growth-oriented real estate investment trust,
which currently owns (directly or indirectly) 18 retail properties
located in British Columbia, Ontario, Manitoba and Quebec,
aggregating approximately 1.3 million square feet of leaseable
space. Partners REIT focuses on expanding and managing a portfolio
of retail and mixed-use community and neighbourhood shopping
centres located in both primary and secondary markets across
Canada.
Forward-looking Statements
Certain statements included in this press release constitute
forward-looking statements, including, but not limited to, those
identified by the expressions "expect", "will" and similar
expressions to the extent they relate to Partners REIT. The
forward-looking statements are not historical facts but reflect
Partners REIT's current expectations regarding future results or
events. These forward looking statements are subject to a number of
risks and uncertainties that could cause actual results or events
to differ materially from current expectations, including the
integration of the Acquisition with our property portfolio, our
expectations regarding an increase in incremental funds as a result
of the Acquisition, our intention to continue to grow and diversify
our portfolio, access to capital, regulatory approvals, intended
acquisitions and general economic and industry conditions. Although
Partners REIT believes that the assumptions inherent in the
forward-looking statements are reasonable, forward-looking
statements are not guarantees of future performance and,
accordingly, readers are cautioned not to place undue reliance on
such statements due to the inherent uncertainty therein.
Neither the TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in policies of the TSX Venture
Exchange) accepts responsibility for the adequacy or accuracy of
this release.
Contacts: Partners Real Estate Investment Trust Patrick Miniutti
President and Chief Operating Officer (250) 940-5500
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