Business
Granite and Magna Agree to Renew and Extend Leases for 15 Properties Including Seven Special Purpose Properties
Granite and Magna Agree to Renew and Extend Leases for 15 Properties Including Seven Speci...
About this update from Granite Real Estate Investment Trust
[{"type":"text","content":"\n\n\n\nGranite and Magna Agree to Renew and Extend Leases for 15 Properties Including Seven Special Purpose Properties\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\nGranite and Magna Agree to Renew and Extend Leases for 15 Properties Including Seven Special Purpose Properties\nCanada NewsWire\nTORONTO, Oct. 3, 2016\n\n\n\nTORONTO, Oct. 3, 2016 /CNW/ - Granite Real Estate Investment Trust (\"Granite\") (TSX: GRT.UN / NYSE: GRP.U) today announced that it has entered into binding agreements with Magna International Inc. and certain of its Cosma International Group subsidiaries (together \"Magna\") to extend or renew early and extend the leases for 15 properties, including seven special purpose properties*, that in total represent approximately 7.5 million square feet or 25% of Granite's total income producing property portfolio as at June 30, 2016. \n\nGranite's stated top strategic priority has been to solidify and extend the cash flow from five special purpose properties with leases expiring before the end of 2018. This key priority has now been achieved and in each case the lease term has been extended beyond the original contractual lease renewal term. In addition, Granite has successfully collaborated with Magna to extend or renew early and extend the leases of another 10 properties, including two additional special purpose properties, and agreed to invest capital to support Magna's overall growth and expansion plans within certain facilities under lease from Granite.\n\nAs a result of these agreements, Granite has locked-in annual rental revenue in excess of $68 million, 75% of which is for 15 years or longer. Granite's weighted average lease term for the special purpose portion of its portfolio will increase to 11.4 years from 5.9 years as at the beginning of 2016 and the weighted average lease term for Granite's entire income producing property portfolio will increase to 7.4 years from 4.7 years at the beginning of the year.\n\nAdditional highlights of the agreements are set out below:\n\n\nKarmax (Milton, Ontario) and Formet (St. Thomas, Ontario), two ...