Business
Granite Real Estate Investment Trust Announces C$393 Million in Acquisitions, Loan Refinancing and Appointment of New Head of U.S.
Granite Real Estate Investment Trust Announces C$393 Million in Acquisitions, Loan Refinan...
About this update from Granite Real Estate Investment Trust
[{"type":"text","content":"\n\n\n\nGranite Real Estate Investment Trust Announces C$393 Million in Acquisitions, Loan Refinancing and Appointment of New Head of U.S.\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, Oct. 21, 2019\n\n\n\nTORONTO, Oct. 21, 2019 /CNW/ - Granite Real Estate Investment Trust (\"Granite\" or the \"REIT\") (TSX: GRT.UN / NYSE: GRP.U) announced today that it has acquired two income-producing properties in the United States. In addition, the tenant of the development property in Texas that Granite has contractually committed to acquire has waived its purchase rights. Closing on the development property is still expected to occur in the fourth quarter of 2019, subject to customary closing conditions. Collectively these acquisitions (the \"Acquisitions\") comprise approximately 3.5 million square feet (\"SF\") at a combined purchase price of approximately C$393 million (US$296 million), representing an in-going weighted average yield of approximately 5.6%. The properties are fully leased with a weighted average lease term of 14.8 years and will be immediately accretive to funds from operations and adjusted funds from operations.\nGranite also announced it has extended and refinanced its US$185 million term loan (\"U.S. Term Loan\") to December 19, 2024 and entered into a new cross-currency interest rate swap resulting in Euro-denominated payments at a 0.522% fixed interest rate. In addition, the REIT announced Mr. Jon Sorg joined Granite's senior leadership team as Head of U.S. and will be based out of a new Granite office in Dallas, Texas. Mr. Sorg has 19 years of investment, asset management and valuation experience in a variety of markets across the south and central U.S.\nKevan Gorrie, Granite's President and CEO, commented that, \"These acquisitions further advance our strategy of acquiring and developing modern e-commerce fulfillment and distribution facilities in Granite's target markets in the U.S. We expect these acquisitions to further enhance the quality of our portfolio, deliver stable and growing cash flow and generate net asset value g...