/NOT FOR DISSEMINATION IN THE UNITED STATES OR DISTRIBUTION THROUGH
UNITED
STATES NEWS OR WIRE SERVICES./
MONTRÉAL, April 26, 2021 /CNW
Telbec/ - PRO Real Estate Investment Trust (TSX: PRV.UN) ("PROREIT"
or the "REIT") today announced that is has closed its previously
announced acquisition of a 100% interest in three light industrial
buildings in Ottawa, Ontario,
totaling 283,495 square feet of gross leasable area ("GLA"), for an
aggregate purchase price of $49.2
million (before closing costs), representing a going in
capitalization rate of approximately 6.1%.
"PROREIT is pleased to have successfully completed the
acquisition of our three recently announced high quality industrial
properties in Ottawa, all
institutionally owned and managed. With this accretive transaction,
we are further expanding our footprint in Ontario, now representing approximately
one-third of our gross leasable area," said James Beckerleg, CEO of PROREIT.
"The remaining nine previously announced property acquisitions
located in Winnipeg, Manitoba, are
expected to close in the second quarter, as we also continue to
actively pursue the significant growth opportunities in our
pipeline," added James
Beckerleg.
Ottawa Light Industrial Assets
Property
Address
|
GLA (square
feet)
|
1050-1051 Baxter
Road
|
161,060
|
2615 Lancaster
Road
|
84,354
|
2620-2650 Lancaster
Road
|
38,081
|
Total
|
283,495
|
The acquired portfolio is comprised of three small bay
industrial assets strategically located within core industrial
submarkets in the City of Ottawa
with easy access to Highway 417 and major arterial roads. Totaling
283,495 square feet of GLA, they feature clear heights of 14
to 18 feet, efficient bay sizes, ample loading doors and practical
layouts. The properties are currently 96% leased to a diverse mix
of tenants with a weighted average lease term of 3.5 years. A
majority of the leases include contracted rent steps.
The $49.2 million purchase price
was substantially financed by the proceeds from a new $33.0 million five-year first mortgage at a rate
of 2.87%. The balance of the purchase price was satisfied with cash
on hand of $16.2 million from the
REIT's recently completed $50.0
million private placement equity financing.
Proforma Portfolio
As a result of this transaction, PROREIT's portfolio now amounts
to 4.7 million square feet of GLA and approximately
$675 million of Gross Book
Value1. PROREIT now owns a total of 10 industrial,
mixed-use and office assets in the greater Ottawa region, with a combined GLA of
approximately 902,000 square feet, with an increased Ontario footprint of approximately 1.6 million
square feet, representing 31% of portfolio GLA and 33% of portfolio
base rent.
__________________________
|
1
|
See "Non-IFRS and
Operational Key Performance Indicators". Represents Gross Book
Value at December 31, 2020 pro forma an $8 million asset
disposition completed in February 2021 and the
transaction.
|
About PRO Real Estate Investment Trust
PROREIT is an unincorporated open-ended real estate investment
trust established pursuant to a declaration of trust under the laws
of the Province of Ontario.
PROREIT was established in March 2013
to own a portfolio of diversified commercial real estate properties
in Canada, with a focus on primary
and secondary markets in Québec, Atlantic
Canada and Ontario with
selective expansion into Western
Canada. PROREIT's portfolio is diversified by property type
and geography.
For more information on PROREIT, please visit the website
at: https://proreit.com.
Non-IFRS and Operational Key Performance Indicators
PROREIT's condensed consolidated financial statements are
prepared in accordance with International Financial Reporting
Standards ("IFRS"). In this press release, as a complement to
results provided in accordance with IFRS, PROREIT discloses and
discusses certain non-IFRS financial measures, including Gross Book
Value. These non-IFRS measures are not defined by IFRS, do not have
a standardized meaning and may not be comparable with similar
measures presented by other issuers. PROREIT has presented such
non-IFRS measures as management believes they are relevant measures
of PROREIT's underlying operating performance and debt management.
Non-IFRS measures should not be considered as alternatives to net
income, cash generated from (utilized in) operating activities or
comparable metrics determined in accordance with IFRS as indicators
of PROREIT's performance, liquidity, cash flow, and profitability.
For a full description of these measures and, where applicable, a
reconciliation to the most directly comparable measure calculated
in accordance with IFRS, please refer to the "Non-IFRS and
Operational Key Performance Indicators" section in PROREIT's
Management's Discussion and Analysis for the year ended
December 31, 2020, available on SEDAR
at www.sedar.com.
Forward-Looking Information
This news release contains forward-looking statements within the
meaning of applicable securities legislation. Forward-looking
statements are based on a number of assumptions and is subject to a
number of risks and uncertainties, many of which are beyond
PROREIT's control, that could cause actual results and events to
differ materially from those that are disclosed in or implied by
such forward-looking statements.
Forward-looking statements contained in this press release
include, without limitation, statements pertaining to expected
timing and closing of the remaining nine previously announced
property acquisitions of the REIT, the acquisition pipeline of
the REIT and the ability of PROREIT to execute its growth
strategies. PROREIT's objectives and forward-looking statements are
based on certain assumptions, including that (i) PROREIT will
receive financing on favorable terms; (ii) the future level of
indebtedness of PROREIT and its future growth potential will remain
consistent with REIT's current expectations; (iii) there will
be no changes to tax laws adversely affecting PROREIT's financing
capacity or operations; (iv) the impact of the current economic
climate and the current global financial conditions on PROREIT's
operations, including its financing capacity and asset value, will
remain consistent with PROREIT's current expectations; (v) the
performance of PROREIT's investments in Canada will proceed on a basis consistent with
PROREIT's current expectations; and (vi) capital markets will
provide PROREIT with readily available access to equity and/or
debt. Without limitation, there can be no assurance that PROREIT's
remaining acquisitions, all of which are subject to standard
closing conditions, will be completed.
The forward-looking statements contained in this news release
are expressly qualified in their entirety by this cautionary
statement. All forward-looking statements in this press release are
made as of the date of this press release. PROREIT does not
undertake to update any such forward-looking information whether as
a result of new information, future events or otherwise, except as
required by law.
Additional information about these assumptions and risks and
uncertainties is contained under "Risk Factors" in PROREIT's latest
annual information form, which is available on SEDAR at
www.sedar.com.
Neither the TSX nor its Regulation Services Provider (as that
term is defined in the policies of the TSX) accepts responsibility
for the adequacy or accuracy of this release.
SOURCE PROREIT