Business
Granite Announces Acquisition of US$122.8 Million Portfolio in the United States and Leasing Update
Granite Announces Acquisition of US$122.8 Million Portfolio in the United States and Leasi...
About this update from Granite Real Estate Investment Trust
[{"type":"text","content":"\n\n\n\nGranite Announces Acquisition of US$122.8 Million Portfolio in the United States and 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, Sept. 15, 2017\n\n\n\nTORONTO, Sept. 15, 2017 /CNW/ - Granite Real Estate Investment Trust (\"Granite\") (TSX: GRT.UN / NYSE: GRP.U) announced today that it has agreed to acquire a portfolio in the United States consisting of approximately 2.2 million square feet of gross leasable area in three properties at a purchase price of US$122.8 million (the \"Acquisition\"). \n\nTwo of the properties are located in Monroe, Ohio, 30 miles north of Cincinnati  and the third in Olive Branch, Mississippi, 27 miles southeast of Memphis. The properties are located in two central U.S. logistic markets that are experiencing rapid growth in tenant demand, rental rates and absorption. In addition, the Cincinnati properties continue to build on Granite's presence within the fast growing e-commerce quadrant bounded by Cincinnati, Columbus, Indianapolis and Louisville. \n\nThese modern properties, with an average age of less than six years, are 100% occupied, have a flexible design and multiple enhanced features including excess truck and trailer storage, cross dock capabilities and clear heights of 32 feet. There are five diverse, non-auto related tenants with a weighted average lease term of approximately 4.9 years. \n\nMichael Forsayeth, Granite's CEO, commented that \"Granite has recently increased its focus to thoughtfully deploy its balance sheet and recycle its property portfolio. The acquisition of this U.S. portfolio is a significant step that is consistent with Granite's strategy to accelerate growth and diversify. Pro-forma, this acquisition will further reduce Granite's Magna concentration from 70.2% of gross leasable area to 65.5%.\"\n\nThe Acquisition is subject to customary closing conditions and closing is anticipated to take place in October 2017. The Acquisition represents an in-going yield of approximately 6.1% and will be immediately accretive to funds from operations and adjusted ...