Business
PRO REIT announces $65.6 million of property acquisitions, filing of a preliminary prospectus for an equity offering, agreements to issue additional equity on a private placement basis and strategic relationship
/NOT FOR DISSEMINATION IN THE UNITED STATES OR DISTRIBUTION THROUGH UNITED STATES NEWS...
About this update from Pro Real Estate Investment Trust
[{"type":"text","content":"\n\n/NOT FOR DISSEMINATION IN THE UNITED STATES OR DISTRIBUTION THROUGH UNITED STATES NEWS OR WIRE SERVICES./\n\n\n\nMONTRÉAL, Sept. 8, 2014 /CNW/ - PRO Real Estate Investment Trust (\"PRO REIT\" or the \"REIT\") (TSXV: PRV.UN) is pleased to announce $65.6 million of accretive property acquisitions, the filing of a preliminary prospectus with securities authorities in each of the provinces of Canada (the \"Prospectus\") for a proposed public equity offering (the \"Offering\"), the entering into of agreements to issue additional equity on a private placement basis and a new strategic relationship. It is currently anticipated that $20.0 million of equity will be distributed under the Offering and that an additional $9.25 million of equity will be distributed on a private placement basis, for a total of $29.25 million of new equity.\n\nProperty Acquisitions \n\nPursuant to conditional agreements, the REIT intends to acquire a total of 14 commercial properties from eight separate and unrelated vendors (collectively, the \"Acquisitions\" and individually, an \"Acquisition\"). The aggregate purchase price (excluding closing costs) for the Acquisitions is anticipated to be approximately $65.6 million. The completion of the Acquisitions on the terms proposed will be significantly accretive to the REIT's unitholders. \n\nUpon closing of the Acquisitions, the REIT's portfolio will be comprised of 23 commercial properties (the \"Portfolio\") totalling 1,044,095 square feet of gross leasable area (\"GLA\"), providing increased exposure to certain of the REIT's core target markets of Québec and Atlantic Canada, and the REIT's first investment in Alberta. \n\nThe Portfolio will be diversified by property type and geography across Québec, New Brunswick, Nova Scotia and Alberta. The Portfolio will consist of three office properties representing 125,407 square feet of GLA, 12 retail properties representing 432,995 square feet of GLA, five industrial properties representing 261,161 square feet of GLA and three commercial mixed use properties representing 224,532 square feet of GLA. The properties are mostly situated in prime locations within their respective markets, along major traffic arteries benefiting from high visibility and easy access. Management believes the quality and diversity of the Portfolio will e...