Inovalis Real Estate Investment Trust Announces Financial Results for the Fourth Quarter and the Year Ended December 31, 2019

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[{"type":"text","content":"\n\n\n\nInovalis Real Estate Investment Trust Announces Financial Results for the Fourth Quarter and the Year Ended December 31, 2019\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, April 9, 2020\n\n\n\n/NOT FOR DISTRIBUTION TO U.S. NEWS WIRE SERVICES OR DISSEMINATION IN THE UNITED STATES/\n TORONTO, April 9, 2020 /CNW/ - Inovalis Real Estate Investment Trust (the \"REIT\") (TSX: INO.UN) today reported strong financial results for the year ended December 31, 2019.\nHIGHLIGHTS \n$51.5 Million Public Offering of EquityIn December 2019, the REIT closed a secondary offering of 4,835,110 trust units (\"Units\"), inclusive of 609,710 Units issued pursuant to the exercise of the 15% over-allotment option, on a bought deal basis, at a price of $10.65 per Unit for total gross proceeds to the REIT of $51.5 million. The REIT used the net proceeds of the offering to fund the purchase price for the remaining interest in the Arcueil property (\"Arcueil\") which was previously jointly held. See \"Arcueil Joint Venture buyback\" below. The remaining proceeds to be used to fund potential future acquisitions of office properties located in France and Germany and for potential capital expenditures relating to the re-positioning and/or re-development of currently owned properties.Arcueil Joint Venture buybackOn December 18th, 2019, the REIT has purchased the Arcueil property, previously held in a joint venture accounted for using the equity method. The winding up of the joint venture was completed on January 22, 2020. The property is located in the Vache Noire district of the southern rim of Paris and is fully leased to the Orange Group (formerly France Telecom) with the existing lease set to expire in March 2023. The property consists of 9 upper levels and 2 basement levels, with 253 parking spaces (40 outdoor and 213 indoor) and office floor plates of approximately 2,500 sq. m. and was acquired at an attractive capitalization rate of 7.7%, which will provide mid-single digit accretion to 2020 and 2021 AFFO per unit estimates.Rueil acquisition loanOn Decemb...

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