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Granite REIT Unlocks Value With Sale of $400 Million of Properties Including Three Special Purpose Properties
Granite REIT Unlocks Value With Sale of $400 Million of Properties Including Three Special...
About this update from Granite Real Estate Investment Trust
[{"type":"text","content":"\n\n\n\nGranite REIT Unlocks Value With Sale of $400 Million of Properties Including Three 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\n\nCanada NewsWire\nTORONTO, Jan. 17, 2018\n\n\n\nTORONTO, Jan. 17, 2018 /CNW/ - Granite Real Estate Investment Trust (\"Granite\") (TSX: GRT.UN / NYSE: GRP.U) announced today that it has achieved an important strategic milestone, by entering into agreements for the sale of ten properties for a total sales price of approximately $400 million (the \"Transactions\").The Transactions are subject to customary closing conditions and are expected to close within the next several weeks.\n\nThree of the ten properties are characterized by Granite as special purpose; two of the special purpose properties are located in St. Thomas, Ontario representing approximately 1.5 million square feet, and one is located in Bowling Green, Kentucky, representing approximately 1.2 million square feet.  The total sales price for these three properties is expected to be approximately $334 million and, with a combined net operating income (\"NOI\") of approximately $24 million, the capitalization rate on the sale is estimated to be 7.0% for the Bowling Green property and 7.3% for the two St. Thomas properties. \n\nThe remaining seven properties are all contiguous, and located in the Greater Toronto Area (\"GTA\") in Newmarket, Ontario, and together represent approximately 0.6 million square feet on 45 acres of land.  The total sales price for these seven assets is $63 million and, with a combined NOI of $2.8 million, the capitalization rate on the sale is estimated to be 4.5%.\n\nMichael Forsayeth, Granite's CEO, commented that \"The sale of these properties is another major value creation milestone for Granite. It significantly reduces Granite's exposure to Magna and the special purpose properties which are key strategic objectives of Granite. These  tax efficient transactions are accretive to Granite's net asset value by approximately $1.50 per stapled unit. We believe that these transactions unlock the embedded v...