Business
Firm Capital Property Trust announces the closing of the acquisition of a 50% interest in an industrial portfolio and private placement
TORONTO , Aug. 1, 2013 /CNW/ - Firm Capital Property Trust (" FCPT " or the " Trust ") (...
About this update from Firm Capital Property Trust
[{"type":"text","content":"\n\n\nTORONTO, Aug. 1, 2013 /CNW/ - Firm Capital Property Trust (\"FCPT\" or the \"Trust\") (TSXV : FCD.UN) is pleased to announce that the Trust has closed the\n previously announced purchase of a 50% interest in 25 industrial\n buildings located in Montreal. The acquisition price of the entire\n portfolio is $48.2 million, excluding transaction costs (the \"Portfolio\").\n\n\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 in excess 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 currently\n approximately 90% occupied.\n\n\nThe Portfolio is being financed with new first mortgage financing\n provided by two Canadian Chartered Banks for proceeds of approximately\n $33 million at a weighted average interest rate of approximately 3.8%.\n 50% of the Portfolio was acquired by the Trust, while the remaining 50%\n was acquired by an entity associated with the Asset Manager that\n consists almost entirely of entities related to senior management and\n trustees of FCPT. The joint acquisition by the parties associated with\n the Asset Manager confirms the alignment of interests and is in\n accordance with the Trust's stated business strategy of completing\n joint acquisitions with experienced real estate industry professionals.\n\n\nPRIVATE PLACEMENT\nThe funding required by the Trust for its 50% interest came from a\n combination of existing cash resources and a $6.4 million non-brokered\n private placement at $5.10 per trust unit. Closing of the non-brokered\n private placement is subject to a customary four month hold period,\n which expires on December 2, 2013.\n\n\nACQUISITION IMPACT ON THE TRUST:\nPro-forma the Portfolio acquisition and financing activity, the Trust's\n Adjusted Funds From Operations (\"AFFO\") payout ratio is anticipated to be below 80% and Debt to Gross Book\n Value of approximately 53%. The Trust will increase the size of its\n current portfolio to approximately $58 million and will grow to 30\n properties. In addition, the acquisition adds diversification through\n the addition of the industrial asset class to the existing retail and\n medical office portfolio.\n\n\nABOUT FIRM CAPITAL...