TORONTO,
Dec. 13, 2013 /CNW/ - Firm Capital
Property Trust ("FCPT" or the "Trust") (TSXV :
FCD.UN) is pleased to announce that it is proceeding with a
non-brokered private placement in which it will raise up to
$15,900,000 and issue up to 3,000,000
trust units at a price of $5.30 per
unit. The Trust will pay a finder's fee of 5.0% of the gross
proceeds to certain eligible persons and or dealers for
subscriptions to the offering completed by qualified investors.
On October 31,
2013, the Trust announced that its Board of Trustees
approved a 5.7% increase in its monthly distributions to
$0.030833 per unit from $0.029166 per unit. On an annualized basis this
equates to distributions of $0.37 per
unit up from $0.35 per unit, yielding
7.0% based on the $5.30 issue price
with an expected 2014 AFFO payout ratio of approximately 85% and a
debt to GBV of 51%.
The Trust will use the proceeds of the Private
Placement to repay its credit facility, strengthen the Trust's
balance sheet and to fund future acquisitions.
Further information about the Trust can be found
by selecting the Firm Capital Property Trust link at
www.firmcapital.com.
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 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