TORONTO, June 25, 2014 /CNW/ - Firm Capital Property
Trust ("FCPT" or the "Trust"), (TSXV: FCD.UN) is
pleased to announce it has closed the previously announced
acquisition of a 70% interest in a 25 property retail portfolio
with the balance being acquired by an entity associated with the
Trust. The purchase price for the entire portfolio is approximately
$32.3 million (excluding closing
costs and adjustments), of which the Trust will pay approximately
$22.6 million (excluding closing
costs and adjustments) for its 70% participation.
The funding by the Trust for its 70% interest in the Portfolio
was sourced from a combination of existing cash, the revolving
credit facility, the assumption of existing mortgage debt and the
arrangement of new first mortgage financing. The assumption of
existing mortgage debt and the arrangement of new first mortgage
financing represents a 57% loan-to-purchase price. Pro forma
closing the Trust expects the acquisition to reduce the AFFO payout
ratio to approximately 75% on an annualized basis, well below the
Trust's targeted AFFO payout ratio of 85%, while increasing our
Debt/Gross Book Value ("GBV") ratio nominally to 54%.
Pro forma the acquisition, the Trust's investment portfolio will
be well diversified across geographies and asset classes. 54% of
NOI will come from Ontario,
followed by Quebec (31%),
Nova Scotia (10%) and British Columbia, Alberta, Manitoba and New
Brunswick (collectively 5%). 60% of NOI will come from our
Net Lease Convenience Retail, followed by Industrial (31%) and Core
Service Provider Office (9%).
For additional information, please visit www.sedar.com or the
Trust's website 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'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