Business
Firm Capital Property Trust announces the acquisition of a 50% interest in an industrial portfolio and non-brokered private placement
TORONTO , July 8, 2013 /CNW/ -  Firm Capital Property Trust (" FCPT " or the " Trus...
About this update from Firm Capital Property Trust
[{"type":"text","content":"\n\n\nTORONTO, July 8, 2013 /CNW/ -  Firm Capital Property Trust (\"FCPT\" or the \"Trust\") (TSXV: FCD.UN) is pleased to announce that the Trust has contracted\n to purchase a 50% participation in a property portfolio acquisition.\n The total acquisition of 25 industrial buildings located in Montreal is\n $48.2 million, excluding transaction costs (the \"Portfolio\"). The acquisition is still subject to certain due diligence\n conditions.\n\n\nACQUISITION DETAILS:\nThe Portfolio is comprised of 1,029,898 square feet located in Montreal.\n The Portfolio consists of seventeen multi-tenant and eight\n single-tenant industrial buildings. The Portfolio has a total of 90\n tenants. The Portfolio is in proximity to Pierre Elliott Trudeau\n Airport as well as the Trans-Canada Highway. The Portfolio is\n approximately 90% occupied.\n\n\nThe acquisition is an off market transaction originated and structured\n by the Trust's asset manager (\"Asset Manager\"), Firm Capital Realty Partners Inc. 100% of the Portfolio is being\n acquired for $48.2 million, before transaction costs, or under $47 per\n square foot. The Portfolio will be financed with a new first mortgage\n to be provided by a Canadian Chartered Bank for proceeds of\n approximately $32 million. Subject to timing, the closing may occur by\n utilizing a bridge acquisition facility, which will subsequently be\n replaced with long term bank financing. Long term financing interest\n rates are currently in the 3.75% and 4.5% range depending if the term\n is five or ten years. 50% of the Portfolio will be acquired by the\n Trust, while the remaining 50% will be acquired by an entity associated\n with the Asset Manager that consists predominantly of senior management\n and certain trustees of FCPT. The joint acquisition by the parties\n associated with the Asset Manager confirms the alignment of interests\n and is in accordance with the Trust's stated business strategy of\n completing joint acquisitions with experienced real estate industry\n professionals. The Portfolio acquisition is expected to close on or\n around July 24, 2013.\n\n\nNON-BROKERED PRIVATE PLACEMENT\nThe funding required by the Trust for its 50% interest in the Portfolio\n will come from a combination of existing cash resources and a Board of\n Trustees approved non-brokered private placement of up to $8.0 millio...