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Inovalis Real Estate Investment Trust announces partial asset sale and closing of development loan
Inovalis Real Estate Investment Trust announces partial asset sale and closing of developm...
About this update from Inovalis Reit
[{"type":"text","content":"\n\n\n\nInovalis Real Estate Investment Trust announces partial asset sale and closing of development loan\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. 27, 2017\n\n\n\n/NOT FOR DISTRIBUTION TO U.S. NEWS WIRE SERVICES OR DISSEMINATION IN THE UNITED STATES/\n\n\n\nTORONTO, Jan. 27, 2017 /CNW/ - Inovalis Real Estate Investment Trust (the \"REIT\") (TSX: INO.UN) announced today the sales of a 12% interest in its Baldi  property (the \"Property\") located in Saint Ouen, in Paris Northern periphery.\n\nThe Property, dedicated mainly to office (68%) and partly to light industrial (18%) use, was acquired in November 2014 for a total purchase price of €22 million (C$31.2 million). Upon acquisition, the vacant industrial space, totaling 31,591 square feet, had zero value attributed to it.   The REIT was able to successfully lease up the vacant industrial space in March 2016.  In November 2016, the REIT negotiated the carve out of the industrial portion of the Property and enter into sales discussion with the tenant occupying the space.  The industrial portion of the Property has been sold to the user for €2.7 million (C$3.8 million).\n\nSubsequent to this partial sale, the Property was recently appraised  at €24.3 million (C$34.4 million), representing an increase of €2.2 million (C$3.1 million) above  the initial acquisition price. This transaction further demonstrates the quality of the  REIT's asset portfolio and management's ability to create and extract value from the existing assets.\n\nDevelopment Loan Update\n\nIn the press release issued on November 11, 2016, the REIT announced its commitment to fund an acquisition and development loan totaling €21.7 million (C$30.7 million)  for an asset located in Rueil Malmaison, in Paris Western periphery.\n\nOn January 11, 2017, the REIT deployed the first portion of this loan commitment totaling  €12.7 million (C$18 million). The loan will generate interest income of 8.50% per year,  paid monthly, in a...