Business
Granite Acquires Two Properties in the United States and Provides Leasing Update
Granite Acquires Two Properties in the United States and Provides Leasing Update C...
About this update from Granite Real Estate Investment Trust
[{"type":"text","content":"\n\n\n\nGranite Acquires Two Properties in the United States and Provides Leasing Update\n\n/* Style Definitions */\nspan.prnews_span\n{\nfont-size:8pt;\nfont-family:\"Arial\";\ncolor:black;\n}\na.prnews_a\n{\ncolor:blue;\n}\nli.prnews_li\n{\nfont-size:8pt;\nfont-family:\"Arial\";\ncolor:black;\n}\np.prnews_p\n{\nfont-size:0.62em;\nfont-family:\"Arial\";\ncolor:black;\nmargin:0in;\n}\n\n\n\n\n\n\n\nCanada NewsWire\nTORONTO, April 5, 2018\n\n\n\nTORONTO, April 5, 2018 /CNW/ - Granite Real Estate Investment Trust (\"Granite\") (TSX: GRT.UN / NYSE: GRP.U) ) announced today that it recently acquired two properties in the United States consisting of approximately 1.0 million square feet of gross leasable area  for  a total purchase price of US$74.1million.\n\nOne of the properties (0.4 million square feet) is located in Greencastle, Pennsylvania, approximately 100 miles from Granite's existing facility in Bethel, Pennsylvania and the other property (0.6 million square feet) is located in Plainfield, Indiana in close proximity to two other Granite-owned properties. These acquisitions build on Granite's presence in two strong, central U.S. logistic markets. \n\nBoth properties were built in 2017, are single tenanted and 100% occupied with a weighted average lease term of approximately 9.5 years. Together, these acquisitions represent an in-going yield of approximately 5.5% and will be immediately accretive to funds from operations and adjusted funds from operations. Granite funded the acquisitions from cash on hand.\n\nMichael Forsayeth, Granite's CEO, commented that \"Consistent with Granite's strategy, these acquisitions in the U.S. will further reduce Granite's Magna concentration from 61% to 59% based on gross leasable area and are a step towards replacing the revenue from properties that were sold earlier in the year.\"\n\nGranite also announced further progress on renewing leases with expiries in 2018 and re-leasing an existing vacancy. Since announcing its 2017 year end results on March 1, 2018, Granite has renewed or re-leased four properties having approximately 0.9 million square feet and a weighted average lease term of approximately 9.7 years. This includes the re-leasing of a 0.7 million square foot space that was acquired in October 2017 and was expected to be vacated in October 2018. \n\nABOUT GRANITE...