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Firm Capital Property Trust announces closing of a 50% interest in an $11.2 million multi-residential property
TORONTO , Nov. 26, 2014 /CNW/ - Firm Capital Property Trust (" FCPT " or the " Trust "), ...
About this update from Firm Capital Property Trust
[{"type":"text","content":"\n\nTORONTO, Nov. 26, 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 50% interest in a 135 unit multi-residential complex (the \"Property\") located in Ottawa, Ontario with the balance being acquired by others that may include related parties of the Trust. The purchase price for the Property is approximately $11.2 million (excluding closing costs), of which the Trust will pay approximately $5.6 million (excluding closing costs) for its 50% participation. \n\nACQUISITION DETAILS:The Property is comprised of 135 units situated in two multi-residential buildings located in the Carlington sector of Ottawa. The Property has an attractive suite mix consisting of spacious one and two bedroom multi-residential units and is currently 95.6% occupied. The Property is being acquired for approximately $83,000 per unit, which is well below replacement cost. The capitalization rate for the Property is approximately 6.0%. The acquisition of the Property represents the first multi-residential acquisition for the Trust and while it is expected to be initially neutral to AFFO, it diversifies the Trust's cash flow into stable multi-residential income. Upon closing, the Trust will generate cash flow from all of its targeted asset classes.\n\nThe funding required to acquire the Property will be sourced from a combination of cash, the assumption of an existing first mortgage from a Canadian Chartered Bank and the arrangement of a new second mortgage financing from a Canadian Chartered Bank. \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 p...