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PROREIT Announces Two Industrial Property Acquisitions in Southwestern Ontario for $15.38 Million
PROREIT Announces Two Industrial Property Acquisitions in Southwestern Ontario for $15.38 ...
About this update from Pro Real Estate Investment Trust
[{"type":"text","content":"\n\n\n\nPROREIT Announces Two Industrial Property Acquisitions in Southwestern Ontario for $15.38 Million\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.prntac{\nTEXT-ALIGN: CENTER\n}\n\n\n\n\n\n\n\nCanada NewsWire\nMONTRÉAL, Dec. 5, 2018\n\n\n\n/NOT FOR DISSEMINATION IN THE UNITED STATES OR DISTRIBUTION THROUGH UNITED STATES NEWS OR WIRE SERVICES/\n MONTRÉAL, Dec. 5, 2018 /CNW/ - PRO Real Estate Investment Trust (\"PROREIT\" or the \"REIT\") (TSXV: PRV.UN) is pleased to announce the proposed acquisition of two quality light industrial properties (the \"acquisitions\") for an aggregate purchase price of $15.4 million, representing an implied weighted average capitalization rate of 6.8%. \n\"These high quality, accretive acquisitions expand our presence in Ontario and in the industrial segment of the market, fitting with our diversification strategy and our intent to increase exposure in each of these areas,\" said James W. Beckerleg, President and Chief Executive Officer.\nExpanding PROREIT's Industrial Footprint in Ontario\nThe two industrial properties are strategically located just west of Cambridge, and in greater Hamilton, both within Ontario's Golden Horseshoe area. They are each on major transportation corridors. The buildings, which are being acquired from a single vendor, contain total gross leasable area (or \"GLA\") of approximately 202,000 square feet and are fully leased to high quality tenants with weighted average lease terms of 7.1 years. \nThe $15.4 million purchase price will be financed by the assumption of $8.4 million in existing mortgages at a weighted average interest rate of 3.15%. The balance of the transaction will be paid by cash on hand and from existing lines of credit. \nThe addition of the properties to the REIT's portfolio will increase PROREIT's industrial exposure to 27.1% compared to 24.9% currently. The acquisitions will also increase the REIT's exposure to the Ontario market, which will climb from 16.4% of the portfolio to 19.6%. The acquisitions are subject to standard closing conditions and are expected to close before th...