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PROREIT Closes Acquisition of 19-Property Portfolio Anchored Primarily by Rexall Pharmacies
PROREIT Closes Acquisition of 19-Property Portfolio Anchored Primarily by Rexall Pharmacie...
About this update from Pro Real Estate Investment Trust
[{"type":"text","content":"\n\n\n\nPROREIT Closes Acquisition of 19-Property Portfolio Anchored Primarily by Rexall Pharmacies\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\nMONTREAL, Dec. 6, 2017\n\n\n\n/NOT FOR DISSEMINATION IN THE UNITED STATES OR DISTRIBUTION THROUGH UNITED STATES NEWS OR WIRE SERVICES./\n\n\n\nMONTREAL, Dec. 6, 2017 /CNW/ - PRO Real Estate Investment Trust (\"PROREIT\" or the \"REIT\") (TSXV: PRV.UN) is pleased to announce that it has closed its previously announced acquisition of 19 properties (the \"portfolio\") in British Columbia, Alberta, Saskatchewan and Ontario, the majority of which is anchored by Rexall pharmacies. The properties comprise both stand-alone drug stores and community service centres. The purchase price of the portfolio was $51.6 million, representing a going-in capitalization rate of 7.1%. \n\nHighlights\n\n\nGoing-in capitalization rate of 7.1%, with built-in rent increases in 2018 and 2019.\nAccretive to unitholders.\nBrings year-to-date acquisitions to in excess of $110 million.\nIncreases total assets by approximately 15% to over $350 million.\nTotal gross leasable area of 172,677 sq. ft.\nThe portfolio enjoys long-term leases with a weighted average lease term of 9.2 years overall, and 10.7 years for the Rexall drug stores.\nPortfolio occupancy rate is 99.25%.\nThe acquisition was financed by $38.7 million of first mortgage debt from a Tier 1 Canadian Chartered Bank at a weighted average interest rate of 3.99% comprising a mix of 5, 10 and 15 year terms, and from lines of credit. Portions of the lines of credit were freed up from partial proceeds of the latest equity offering completed in June 2017. \nRexall Pharmacy Group is part of McKesson Corporation, a Fortune 500 company.\nRexall becomes the largest tenant of the REIT by base rent.\nCreates national footprint for the first time.\n\nThe Portfolio\n\nThe portfolio consists of 19 properties comprised of stand-alone stores or anchored community commercial strip centres in cities and towns, mostly in Western Canada. They include five proper...