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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
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.
GLA (Square Feet)
70-104 Durand Road
45 Beghin Avenue
214 De Baets Street
141-159 De Baets Street
115-133 De Baets Street
36-48 Durand Road
32 Beghin Avenue
30 Durand Raod
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.
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.
For further information: