Business
Parkit to Sell Winnipeg Industrial Asset Portfolio in Return for an Investment in PROREIT
Toronto, Ontario--(Newsfile Corp. - May 13, 2025) - Parkit Enterprise Inc. (TSXV: PKT) ("Parkit"...
About this update from Parkit Enterprise Inc.
[{"type":"text","content":"Parkit to Sell Winnipeg Industrial Asset Portfolio in Return for an Investment in PROREITToronto, Ontario--(Newsfile Corp. - May 13, 2025) - Parkit Enterprise Inc. (TSXV: PKT) (\"Parkit\" or the \"Company\") has agreed to sell a portfolio of six industrial buildings and properties located in Winnipeg, Manitoba (the \"Properties\"), to PRO REIT Limited Partnership (\"PROREIT LP\") as purchaser, for aggregate proceeds of $96,500,000, subject to customary adjustments (the \"Transaction\"). Approximately $40 million of the proceeds will be in the form of units of PRO Real Estate Investment Trust (\"PROREIT\"), totaling an aggregate of approximately 6.45 million units. The purchaser is not a related party to Parkit and the Transaction constitutes an arm's length transaction for the purposes of the TSX Venture Exchange policies. The purchase agreement for the Transaction is dated February 18, 2025, and certain conditions were waived on May 12, 2025. Sale Price and ProceedsThe sale price for the Transaction is $96,500,000, subject to adjustments. The Properties include six industrial buildings that have a total of 678,177 square feet of gross leasable area. Approximately $40 million of the sale price will be paid by the issuance to Parkit of trust units PROREIT and Class B LP Units (\"Class B Units\") of PROREIT LP, each of which is exchangeable for a trust unit of PROREIT, both at a price of $6.20 per unit, totaling an aggregate of approximately 6.45 million units. PROREIT (PRV.UN) 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. PROREIT trades on the Toronto Stock Exchange (the \"TSX\"). Following the Transaction, Parkit will hold an approximate 9.6% ownership interest in PROREIT. Depending on the satisfaction of certain closing conditions, closing is expected to occur in Q2 of 2025.Concurrent with the closing of the Transaction, PROREIT and Parkit will enter 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 ...