Business
Firm Capital Property Trust Announces Closing of 70% Interest in a 25 Property Retail Portfolio for $22.6 Million
TORONTO , June 25, 2014 /CNW/ - Firm Capital Property Trust (" FCPT " or the " Trust...
About this update from Firm Capital Property Trust
[{"type":"text","content":"\n\nTORONTO, June 25, 2014 /CNW/ - Firm Capital Property Trust (\"FCPT\" or the \"Trust\"), (TSXV: FCD.UN) is pleased to announce it has closed the previously announced acquisition of a 70% interest in a 25 property retail portfolio with the balance being acquired by an entity associated with the Trust. The purchase price for the entire portfolio is approximately $32.3 million (excluding closing costs and adjustments), of which the Trust will pay approximately $22.6 million (excluding closing costs and adjustments) for its 70% participation. \n\nThe funding by the Trust for its 70% interest in the Portfolio was sourced from a combination of existing cash, the revolving credit facility, the assumption of existing mortgage debt and the arrangement of new first mortgage financing. The assumption of existing mortgage debt and the arrangement of new first mortgage financing represents a 57% loan-to-purchase price. Pro forma closing the Trust expects the acquisition to reduce the AFFO payout ratio to approximately 75% on an annualized basis, well below the Trust's targeted AFFO payout ratio of 85%, while increasing our Debt/Gross Book Value (\"GBV\") ratio nominally to 54%. \n\nPro forma the acquisition, the Trust's investment portfolio will be well diversified across geographies and asset classes. 54% of NOI will come from Ontario, followed by Quebec (31%), Nova Scotia (10%) and British Columbia, Alberta, Manitoba and New Brunswick (collectively 5%). 60% of NOI will come from our Net Lease Convenience Retail, followed by Industrial (31%) and Core Service Provider Office (9%). \n\nFor additional information, please visit www.sedar.com or the Trust's website at www.firmcapital.com\n\nABOUT FIRM CAPITAL PROPERTY TRUSTFirm Capital Property Trust is focused on creating long-term value for Unitholders, through capital preservation and disciplined investing to achieve stable distributable income. In partnership with management and industry leaders, The Trust's plan is to co-own a diversified property portfolio of multi-residential, flex industrial, net lease convenience retail, and core service provider professional space. In addition to stand alone accretive acquisitions, the Trust will make joint acquisitions with strong financial partners and acquisitions of partial interests from existing ownership groups, in a manner that provides...