Partners REIT to Acquire Prestigious Vancouver Island Retail Centre
August 03 2011 - 6:51PM
Marketwired
Partners Real Estate Investment Trust ("Partners REIT") (TSX
VENTURE: PAR.UN) announced today that it would be acquiring the
Evergreen Shopping Centre, a five building 88,200 square foot
open-air shopping centre located in Sooke, British Columbia,
approximately 37 kilometers west of Victoria. Anchored by a Western
Foods grocery store, a newly-constructed Shoppers Drug Mart, a BC
Liquor outlet and a Royal Bank branch, the property is currently
96.2% occupied. The property currently generates Net Operating
Income of approximately $1.2 million on an annualized basis and
management expects it will generate approximately $400,000 in
incremental annualized Funds From Operations.
The purchase price of the property is approximately $15.8
million, subject to final adjustments and acquisition costs. The
aggregate outlay of funds will be covered by the placement of a
$10.5 million mortgage bearing interest at a rate slightly below
4%. The balance of the purchase price will be in cash from a
recently funded new secondary loan bearing interest at 7% and the
REIT's lines of credit. The closing of the transaction is expected
on or before August 31, 2011.
Sooke is an attractive, high-end residential community and
tourist centre within easy commuting distance of Victoria. The town
has been growing over the last decade and has a number of new
residential developments underway. The Evergreen Shopping Centre is
the largest and strongest retail centre in the community providing
necessity-based products and services to its residents.
"We are pleased to be extending our presence in the British
Columbia market with this acquisition," commented Adam Gant, Chief
Executive Officer. "The purchase is consistent with our stated
strategy to strengthen, expand and further diversify our portfolio
by acquiring well-positioned community and neighbourhood properties
in growth markets with consistent strong cash flows derived from
tenants that provide necessity-based products and services."
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, Manitoba, Ontario 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
www.partnersreit.com
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