PROREIT enters into a binding agreement to acquire an office property in Pointe-Claire, Quebec

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[{"type":"text","content":"\n\n\nMONTRÉAL, Dec. 12, 2013 /CNW/ - PRO Real Estate Investment Trust (\"PROREIT\" or the \"REIT\") (TSXV: PRV.UN) announced today its first acquisition since completing\n the acquisition of the four properties that were acquired further to\n the public offering of PROREIT, which closed on November 26, 2013.\n\n\nPROREIT has entered into a binding agreement to acquire an office\n property located at 325 Hymus Boulevard in Pointe-Claire, Québec for\n $3.38 million (excluding closing and transaction costs), of which\n approximately $1.01 million will be satisfied through the issuance of\n Class B limited partnership units of PRO REIT Limited Partnership, a\n subsidiary of the REIT, at a price per unit of $2.40. The balance of\n the purchase price will be satisfied through the use of PROREIT's\n revolving credit facility which will be expanded to a maximum\n availability of $9 million from its original $6.9 million with the\n inclusion of this property as additional security. The closing of the\n acquisition is expected to be completed by mid-December and is subject\n to standard closing conditions. The purchase price represents a\n going-in capitalization rate of approximately 8.25% on in place cash\n flows and will be immediately accretive to the REIT.\n\n\nThe property is a newly renovated office building with 23,994 square\n feet of gross leasable area and potential expansion of 15,000 square\n feet. The property was built in 1977 and renovated in 2011. The\n building is 71.8% occupied by Centre De Réadaptation Lisette Dupras\n under a long-term lease until August 2021. It has easy access to a\n major roadway (highway 40) and is in close proximity to the Lakeshore\n General Hospital. The property is situated on approximately 2.0 acres\n of land and has 23 outdoor parking spaces.\n\n\nFollowing the closing of the acquisition, PROREIT's portfolio will be\n comprised of nine commercial properties totalling 396,872 square feet\n of gross leasable area. The portfolio of the REIT is diversified by\n property type and geography across Eastern Canada, including the\n Greater Montréal Area and certain urban centres of Atlantic Canada.\n\n\nAbout PROREIT \n\n\nPROREIT (www.proreit.com) is an unincorporated open-ended real estate investment trust\n established pursuant to a declaration of trust under the laws of the\n...

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