Business
Parkit Completes Sale of Winnipeg Industrial Asset Portfolio for Cash and an Investment in PROREIT
Toronto, Ontario--(Newsfile Corp. - June 27, 2025) - Parkit Enterprise Inc. (TSXV: PKT)
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About this update from Parkit Enterprise Inc.
[{"type":"text","content":"Parkit Completes Sale of Winnipeg Industrial Asset Portfolio for Cash and an Investment in PROREITToronto, Ontario--(Newsfile Corp. - June 27, 2025) - Parkit Enterprise Inc. (TSXV: PKT) (\"Parkit\" or the \"Company\"), has completed the sale of a portfolio of six industrial properties located in Winnipeg, Manitoba (the \"Properties\") to a subsidiary of PRO Real Estate Investment Trust (TSX: PRV.UN) (\"PROREIT\") for proceeds of $96,500,000, subject to customary adjustments (the \"Transaction\"). Parkit received $40 million of the proceeds in the form of 6,451,613 units of PROREIT and its subsidiary PRO REIT Limited Partnership (\"PROREIT LP\"), in aggregate. PROREIT and PROREIT LP are not related parties of Parkit and the Transaction constitutes an arm's length transaction for the purposes of the TSX Venture Exchange policies.Sale Price and ProceedsThe sale price for the Transaction is $96,500,000, subject to adjustments. The Properties include six industrial properties that have a total of 678,177 square feet of gross leasable area. $40 million of the sale price has been paid by the issuance to Parkit of 3,776,613 trust units of PROREIT (\"Trust Units\") and 2,675,000 Class B LP Units (\"Class B LP Units\") of PROREIT LP, both at a price of $6.20 per unit, totaling an aggregate of 6,451,613 units, and representing an approximate 9.6% ownership interest in PROREIT.Each Class B LP Unit is exchangeable for a Trust Unit of PROREIT and is attached to a special voting unit of PROREIT providing for a voting right in PROREIT. PROREIT is an unincorporated open-ended real estate investment trust which owns a portfolio of high-quality commercial real estate properties in Canada, with a strong industrial focus in robust secondary markets. The Trust Units of PROREIT trade on the Toronto Stock Exchange (the \"TSX\"). Concurrent with the closing of the Transaction, PROREIT and Parkit have entered into an investor rights agreement providing for, among other things, pre-emptive rights for the purchase by Parkit of Trust Units on a PROREIT offering, registration rights for the sale of the Trust Units (including Class B LP Units exchanged for Trust Units) that Parkit acquires, the right for Parkit to nominate one trustee to PROREIT's board of trustees, and certain lock-up and standstill provisions. The initial Parkit nominee to the PRO...