Canada NewsWire
- The portfolio to be acquired is composed of 9 industrial properties containing 406,818 square feet of gross leasable area (" GLA ") and 1 office property with a GLA of 14,475 square feet;
- This acquisition will be immediately accretive to BTB's Funds From Operations per unit (" FFO ");
- The properties are 100% occupied with reputable national clients, operating in diverse industries;
-
The net proceeds of the
$26 million
disposition of the
Cornwall
properties
(the " Cornwall Disposition " or the " Cornwall Portfolio ") will be used to partially fund the acquisition; - Post transactions, BTB's portfolio will be composed of 71 properties , representing 5.6 million square feet of GLA.
MONTRÉAL, Dec. 22, 2021 /CNW Telbec/ - BTB Real Estate Investment Trust (TSX: BTB.UN) (" BTB " or the " REIT ") announces that it has waived conditions for the acquisition of 9 high-quality industrial properties and 1 office property located in Edmonton, Alberta and in Saskatoon, Saskatchewan for an aggregate purchase price of $94 million excluding transaction costs (the " Western Canada Portfolio ", the " Portfolio " or the " Acquisition "). This Acquisition enables BTB to further increase its exposure to the industrial sector whilst also enabling the REIT to broaden its geographic presence within Canada , in a disciplined manner. This Acquisition is a first for BTB in Western Canada and is scheduled to be concluded in December 2021 .
Concurrent with the Acquisition, BTB also announces that conditions were waived for the sale of its Cornwall Portfolio for a total consideration of $26 million , excluding transaction costs. Following the reimbursement of its mortgages on the properties, BTB will receive net proceeds of approximately $19 million , which will be partially used to fund the purchase price of the Acquisition. The disposition of the Cornwall Portfolio is expected to close in January 2022 .
ABOUT THE
WESTERN CANADA
PORTFOLIO
The Western Canada Portfolio houses reputable national tenants operating in various industries such as agricultural machinery, automotive, dairy, energy, and industrial equipment just to name a few. The Western Canada Portfolio is 100% occupied with modern facilities, mostly built in the last decade. The Western Canada Portfolio will be acquired with an in-place cap rate of
6.90%
or
6.46%
on a stabilized basis.
WESTERN CANADA PORTFOLIO
|
|
Property addresses |
GLA 1 |
Year 2 |
Type |
Main tenants
|
|
|
|
|
|
|
|
|
1 |
6909,42 nd Street, Leduc, AB |
24,014 |
2014 |
Industrial |
Ameco Services Inc.
|
|
2 |
18410,118A Avenue NW, Edmonton,
|
30,297 |
2011 |
Industrial |
Drive Products Inc.
|
|
3 |
18028,114 Avenue NW, Edmonton,
|
55,849 |
1998 |
Industrial |
EPCOR Water Services
|
|
4 |
28765, Acheson Road, Acheson, AB |
36,334 |
2015 |
Industrial |
NCSG Crane
|
|
5 |
25616, 117 Avenue NW, Acheson,
|
37,143 |
2012 |
Industrial |
Strongco LP
3
|
|
6 |
3542 Millar Avenue, Saskatoon, SK |
28,800 |
2009 |
Industrial |
Vicwest Inc.
|
|
7 |
318, 68 th Street, Saskatoon, SK |
101,150 |
2016 |
Industrial |
National Tire
|
|
8 |
3911 Millar Avenue, Saskatoon, SK |
26,400 |
2010 |
Industrial |
Wesco Distribution
|
|
9 |
3927 & 3931 Wanuskewin Rd,
|
66,831 |
2011
2013 |
Industrial |
CNH Industrial Canada
Saputo Dairy Products
|
|
10 |
1921, 91 st Street SW, Edmonton, AB |
14,475 |
2012 |
Office |
Maple Reinders
|
|
|
|
|
|
|
|
|
|
Total Western Canada Portfolio GLA |
421,293 |
|
|
|
FINANCING THE ACQUISITION
The purchase price for the Western Canada Portfolio will be financed by:
|
i. |
Mortgages: mortgages totaling $62 million ; |
|
ii. |
Net Proceeds from the Cornwall Disposition: approximately $19 million ; |
|
iii. |
Cash: available cash on hand; |
|
iv. |
Credit facility: existing undrawn capacity on BTB's credit facility. |
The 10 properties composing the Western Canada Portfolio
CORNWALL
PORTFOLIO DISPOSITION
BTB's Cornwall Portfolio is composed of 4 properties located in
Cornwall, Ontario
. The sale price of approximately
$26 million
exceeds the properties fair value by
18%
as reported in Q3 2021 of
$21 million
and exceeds by
73%
the original purchase price of
$15 million
. The closing is scheduled in
January 2022
. This disposition includes the sale of the following properties:
CORNWALL PORTFOLIO
|
|
Property addresses |
GLA 4 |
Year 5 |
|
|
|
|
|
|
1 |
705, Boundary Road, Cornwall, ON |
144,409 |
1970's |
|
2 |
725, Boundary Road, Cornwall, ON |
171,344 |
1970's |
|
3 |
805, Boundary Road, Cornwall, ON |
107,023 |
1970's |
|
4 |
2901, Marleau Avenue, Cornwall,
|
28,000 |
1983-86-2002 |
|
|
|
|
|
|
|
Total Cornwall Portfolio GLA |
450,776 |
|
ABOUT BTB
BTB is a real estate investment trust listed on the Toronto Stock Exchange. BTB is an important owner of properties in eastern
Canada
. Considering these transactions, BTB will own
71
properties, representing a total leasable area of approximately
5.6 million
sq. ft. Following the Acquisition and Disposition, BTB's total asset value will surpass
$1.1 billion
.
BTB'S OBJECTIVES
- Generate stable monthly cash distributions that are reliable and fiscally beneficial to unitholders;
- Grow the Trust's assets through internal growth and accretive acquisitions in order to increase distributable income and therefore refund distributions;
- Optimize the value of its assets through the dynamic management of its properties in order to maximize the long-term value of its properties and therefore, its units.
BTB offers a distribution reinvestment plan to unitholders whereby the participants may elect to have their monthly cash distribution reinvested in additional units of BTB at a price based on the weighted average price for BTB's Units on the Toronto Stock Exchange for the five trading days immediately preceding the distribution date, discounted by 3%.
For more detailed information, visit BTB's website at www.btbreit.com.
_______________________________________
|
1 |
GLA is presented on a square foot basis. |
|
2 |
Reference to the year the property was built. |
|
3 |
Strongco LP is part of BTB's Top 10 Client list. |
|
4 |
GLA is represented on a square foot basis. |
|
5 |
Reference to the year the property was built/renovated. |
SOURCE BTB Real Estate Investment Trust
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