Business
PROREIT Announces $40.5 Million of Property Acquisitions and Public Offering of $17.5 Million of Trust Units
/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, May 19, 2015 /CNW/ - PRO Real Estate Investment Trust (\"PROREIT\" or the \"REIT\") (TSXV: PRV.UN) is pleased to announce that it has entered into agreements to acquire an aggregate of 7 commercial properties for an aggregate purchase price of $40.5 million, representing an implied weighted average capitalization rate of 7.5% (collectively, the \"Acquisitions\").\n\nHighlights of the Acquisitions\n\n\nEnhanced portfolio scale and diversification: Following the Acquisitions, PROREIT's portfolio will be comprised of 29 income producing commercial properties representing 1,431,296 square feet of GLA.\nHigh quality tenants: The Acquisitions are anchored by high quality tenants under long term leases. Government and national tenants represent 85.8% of the Acquisitions' base rent with a weighted average remaining term lease of 7.7 years.  \nAccretive: The purchase price of $40.5 million (excluding closing costs) represents an attractive 7.5% going-in capitalization rate.  The Acquisitions are expected to be immediately accretive to PROREIT's AFFO per unit. \n\n\"PROREIT continues to deliver on its core business plan of delivering accretive acquisitions of high quality office, retail and industrial properties with strong tenants and long-term leases in place,\" said James W. Beckerleg, President and Chief Executive Officer.  \"With these acquisitions, two of which take us into the Toronto market for the first time, and with our first bought deal, we have stepped across a new threshold.  PROREIT is clearly demonstrating that it is capable of delivering significant, high quality growth.\"\n\nProperty Acquisitions \n\nPursuant to conditional agreements, the REIT intends to acquire a total of 7 commercial properties. The aggregate purchase price (excluding closing costs) for the Acquisitions is anticipated to be approximately $40.5 million. The completion of the Acquisitions on the terms proposed will be significantly accretive to the REIT's unitholders. The purchase price of the Acquisitions will be satisfied by a combination of the following funding sources: i) approximately $12.5 million in cash; ii) the issuance to the vendors of certain Acquisitions of approximately 0.5 ...