Business
Boardwalk REIT agrees to sell its Windsor, Ontario Property Portfolio
CALGARY , July 20, 2015 /CNW/ - Boardwalk Real Estate Investment Trust ("BEI.UN" - TSX) ...
About this update from Boardwalk Real Estate Investment Trust
[{"type":"text","content":"\n\nCALGARY, July 20, 2015 /CNW/ - Boardwalk Real Estate Investment Trust (\"BEI.UN\" - TSX)\n\nBoardwalk Real Estate Investment Trust is pleased to announce that it has entered into an agreement with a private REIT to sell its Windsor Portfolio.  The Agreement is now unconditional.  The transaction is expected to close on September 10, 2015.  Details of the sale are summarized below:\n\n\n\n\n\n\nBuilding Name\n\n\nCity\n\n\n# Units\n\n\nType\n\n\nPrice\n\n\n\n$/unit\n\n\n$/sq ft\n\n\nCurrent Debt\n\n\n\nCap Rate\n\n\n\nClosing Date\n\n\n\nSold\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\nWindsor Portfolio\n\n\nWindsor, Tecumseh\n\n\n1685\n\n\nHigh Rise, Low Rise, Townhouses \n\n\n$   136,200,000\n\n\n1\n\n\n$   80,800\n\n\n$      106\n\n\n$  20,500,000\n\n\n3\n\n\n5.43%\n\n\n2\n\n\nSeptember 10, 2015\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n1 Excludes Transaction Costs\n\n\n\n\n\n\n\n2 Based on 2014 NOI, excluding Transaction Costs\n\n\n\n\n\n\n\n3 Properties to be delivered free and clear of mortgage encumberances on closing, balance is as of September, 2015\n\n\n\n\n \n\nThe Trust is continuing the process of reviewing select non-core properties with the intent of high-grading its portfolio by re-deploying the equity from these assets towards value enhancing transactions for the Trust's Stakeholders, including acquisitions, development, and capital improvements.  Consistent with the Trust's balanced approach, some of the net proceeds may be returned to Unitholders though the payment of special distributions and may also be used towards other value enhancing transactions such as the repurchase and cancellation of Trust Units under the Trust's Normal Course Issuer Bid.  To that end, on June 30, 2015, the Trust received regulatory approval to renew its Normal Course Issuer Bid allowing the Trust to purchase and cancel up to 3,855,766 Trust Units, representing 10% of its public float at the time.  \n\nBetween mid-2007 and the second quarter of 2014, the Trust exercised a similar strategy of high-grading its portfolio through the sale of 2,335 Apartment Units, comprised of non-core assets, for total gross proceeds of $326.2 million.  The Trust re-deployed a significant portion of this equity into the purchase and cancellation of Trust Units under s...