TORONTO, Aug. 1, 2013 /CNW/ - Firm Capital Property Trust
("FCPT" or the "Trust") (TSXV : FCD.UN) is pleased to
announce that the Trust has closed the previously announced
purchase of a 50% interest in 25 industrial buildings located in
Montreal. The acquisition price of
the entire portfolio is $48.2
million, excluding transaction costs (the
"Portfolio").
The Portfolio is comprised of 1,029,898 square
feet located in Montreal. The
Portfolio consists of seventeen multi-tenant and eight
single-tenant industrial buildings. The Portfolio has in excess of
90 tenants. The Portfolio is in proximity to Pierre Elliott Trudeau
Airport as well as the Trans-Canada Highway. The Portfolio is
currently approximately 90% occupied.
The Portfolio is being financed with new first
mortgage financing provided by two Canadian Chartered Banks for
proceeds of approximately $33 million
at a weighted average interest rate of approximately 3.8%. 50% of
the Portfolio was acquired by the Trust, while the remaining 50%
was acquired by an entity associated with the Asset Manager that
consists almost entirely of entities related to senior management
and trustees of FCPT. The joint acquisition by the parties
associated with the Asset Manager confirms the alignment of
interests and is in accordance with the Trust's stated business
strategy of completing joint acquisitions with experienced real
estate industry professionals.
PRIVATE PLACEMENT
The funding required by the Trust for its 50% interest came from a
combination of existing cash resources and a $6.4 million non-brokered private placement at
$5.10 per trust unit. Closing of the
non-brokered private placement is subject to a customary four month
hold period, which expires on December 2,
2013.
ACQUISITION IMPACT ON THE TRUST:
Pro-forma the Portfolio acquisition and financing activity, the
Trust's Adjusted Funds From Operations ("AFFO") payout ratio
is anticipated to be below 80% and Debt to Gross Book Value of
approximately 53%. The Trust will increase the size of its current
portfolio to approximately $58
million and will grow to 30 properties. In addition, the
acquisition adds diversification through the addition of the
industrial asset class to the existing retail and medical office
portfolio.
ABOUT FIRM CAPITAL PROPERTY TRUST
Firm Capital Property Trust is focused on creating long-term value
for Unitholders, through capital preservation and disciplined
investing to achieve stable distributable income. In partnership
with management and industry leaders, The Trust's plan is to co-own
a diversified property portfolio of multi-residential, flex
industrial, net lease convenience retail, and core service provider
professional space. In addition to stand alone accretive
acquisitions, the Trust will make joint acquisitions with strong
financial partners and acquisitions of partial interests from
existing ownership groups, in a manner that provides liquidity to
those selling owners and professional management for those
remaining as partners. Firm Capital Realty Partners Inc.,
through a structure focused on an alignment of interests with the
Trust, will source, syndicate and participate in investments.
FORWARD LOOKING INFORMATION
This press release may contain forward-looking statements. In some
cases, forward-looking statements can be identified by the use of
words such as "may", "will", "should", "expect", "plan",
"anticipate", "believe", "estimate", "predict", "potential",
"continue", and by discussions of strategies that involve risks and
uncertainties. The forward-looking statements are based on certain
key expectations and assumptions made by the Trust regarding, among
other things, the use of the net proceeds from the Offering, the
closing of the Offering, and the closing of the Acquisition. By
their nature, forward-looking statements involve numerous
assumptions, inherent risks and uncertainties, both general and
specific, that contribute to the possibility that the predictions,
forecasts, projections and various future events will not occur.
Although management of the Trust believes that the expectations
reflected in the forward-looking statements are reasonable, there
can be no assurance that future results, levels of activity,
performance or achievements will occur as anticipated. Neither the
Trust nor any other person assumes responsibility for the accuracy
and completeness of any forward-looking statements, and no one has
any obligation to update or revise any forward-looking statement,
whether as a result of new information, future events or such other
factors which affect this information, except as required by
law.
This press release shall not constitute an offer
to sell or the solicitation of an offer to buy, which may be made
only by means of a prospectus, nor shall there be any sale of the
Units in any state, province or other jurisdiction in which such
offer, solicitation or sale would be unlawful prior to registration
or qualification under securities laws of any such state, province
or other jurisdiction. The Units of the Firm Capital Property Trust
have not been, and will not be registered under the U.S. Securities
Act of 1933, as amended, and may not be offered, sold or delivered
in the United States absent
registration or an application for exemption from the registration
requirements of U.S. securities laws.
SOURCE Firm Capital Property Trust