Business
PROREIT provides update with respect to the proposed terms of its contemplated offering
/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\n/NOT FOR DISSEMINATION IN THE UNITED STATES OR DISTRIBUTION THROUGH\n UNITED STATES NEWS OR WIRE SERVICES./\n\n\nMONTRÉAL, Nov. 14, 2013 /CNW/ - PRO Real Estate Investment Trust (\"PROREIT\" or the \"REIT\") (TSXV: PRV.UN) announced today that the offering price of the units\n of the REIT (\"Units\") proposed to be offered to the public pursuant to a preliminary\n prospectus of the REIT dated October 22, 2013 (the \"Prospectus\") is anticipated to be $2.40 per unit (the \"Offering Price\"), for a total proposed offering of $11.1 million (approximately $12.8\n million if the over-allotment option is exercised in full) (the \"Offering\"). Including the issuance of $5.8 million of Class B LP Units (as\n defined below) to the vendors of certain properties as described below,\n a total of $16.9 million (approximately $18.6 million if the\n over-allotment option is exercised in full) of new equity would be\n issued in connection with the Offering and the closing of the\n acquisitions described in the Prospectus (the \"Acquisitions\").\n\n\nVendors of certain properties that are proposed to be acquired by the\n REIT, as described in the Prospectus, have agreed to accept a minimum\n of $5.8 million of Class B limited partnership units of PRO REIT\n Limited Partnership (\"Class B LP Units\") as partial consideration for the sale of such properties, all at a\n price per Class B LP Unit equal to the Offering Price. Immediately\n following the closing of the Offering and the Acquisitions, it is\n expected that members of management, the board of trustees, and certain\n vendors will hold a 30.7% equity interest in the REIT. The Class B LP\n Units will be issued on a private placement basis, which is subject to\n regulatory approvals, including the approval of the TSX Venture\n Exchange.\n\n\nSubject to the closing of the Offering, it is currently anticipated that\n the payout ratio of the REIT will be 92.9% of the REIT's adjusted funds\n from operations and that the monthly cash distributions will represent\n an annualized distribution yield of 8.75% based on the Offering Price.\n It is anticipated that the first distribution will be for the period\n from closing of the Offering to December 31, 2013 and will be paid on\n or about January 15, 2014 to unitholders of record on December 31, 2013\n and will be in the amount of $0.0198 ...