Inovalis REIT Announces Vanves Property Sale

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[{"type":"text","content":"\n\n\n\nInovalis REIT Announces Vanves Property Sale\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, Feb. 20, 2020\n\n\n\n/NOT FOR DISTRIBUTION TO U.S. NEWS WIRE SERVICES OR DISSEMINATION IN THE UNITED STATES/\n TORONTO, Feb. 20, 2020 /CNW/ - Inovalis Real Estate Investment Trust (\"Inovalis REIT\" or the \"REIT\") (TSX: INO.UN) announced today that the REIT has successfully closed the disposition of its Vanves property (\"Vanves\" or \"Property\") on December 16th, 2019 for net proceeds of €95 million ($138.4 million). The Property was sold for €9 million ($13.1 million) above the December 31st, 2018 asset valuation and represents a capitalization rate near to 6%.\n\n \n \n\n \nThe Property was acquired by the REIT for €78 million ($113.6 million) in April, 2013, upon closing of the REIT's initial public offering. Vanves was later refinanced in 2014, allowing the REIT to monetize €19 million ($27.7 million), which was used to acquire new assets in Germany. The sale crystalizes a substantial increase in the Property's value for unitholders, with the appreciation largely driven by capitalization rate compression and strong rental rate growth. \nNet cash proceeds from the sale, following repayment of property level debt and transaction costs, are approximately €46.6 million ($67.9 million), equating to an equity IRR close to 15% over a period of 6-years. Cash proceeds available post sale will be used to buy out existing joint venture investments and make new accretive acquisitions.  \nKhalil HANKACH, CFO and CIO of Inovalis REIT commented, \"the sale confirms the significant appreciation in value of our assets since the REIT's IPO. Furthermore, we are in the process of deploying the proceeds to purchase existing joint venture investments and into new accretive acquisitions.  We expect to conclude these transactions over the next few months.\" \nAll amounts have been converted to Canadian dollars ($) using an exchange rate of $1.4565 per €.\nABOUT INOVALIS REAL ESTATE INVESTMENT T...

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