Business
Granite REIT Announces Sale of its Two U.S. Special Purpose Properties to Magna
Granite REIT Announces Sale of its Two U.S. Special Purpose Properties to Magna Ca...
About this update from Granite Real Estate Investment Trust
[{"type":"text","content":"\n\n\n\nGranite REIT Announces Sale of its Two U.S. Special Purpose Properties to Magna\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, July 30, 2018\n\n\n\nTORONTO, July 30, 2018 /CNW/ - Granite Real Estate Investment Trust (\"Granite\") (TSX: GRT.UN / NYSE: GRP.U) announced today that subsidiaries of Magna International Inc. (\"Magna\") have exercised their rights of first refusal in response to a third party offer to acquire Granite's two remaining special purpose properties in the United States for a total purchase price of approximately US$207 million (the \"Transactions\"). The properties are located in Piedmont, South Carolina and Clinton, Tennessee and together represent approximately 1.6 million square feet and generate net operating income of approximately US$14.2 million, which represents an implied capitalization rate of 6.9%.  Completion of the Transactions is subject to customary closing conditions and is expected to occur later in the third quarter of 2018.\n\nMichael Forsayeth, Granite's CEO, commented that \"The sale to Magna of these special purpose properties is another significant strategic step forward for Granite. The Transactions will further reduce Granite's exposure to Magna and the special purpose properties which are key strategic objectives for Granite. Pro forma the Transactions will reduce Granite's Magna concentration to 49% based on gross leasable area.\" \n\nABOUT GRANITE\n\nGranite is a Canadian-based REIT engaged in the acquisition, development, ownership and management of predominantly industrial, warehouse and logistics properties in North America and Europe. Granite owns 90 rental income properties representing approximately 34 million square feet of leasable area. Through the thoughtful deployment of its balance sheet and selective dispositions, Granite is continuing to build a high quality, globally diversified industrial real estate business.\n\nOTHER INFORMATION \n\nCopies of financial data and other publicly filed documents about Granite are available through the internet on the Canadian Sec...