TORONTO, Nov. 11, 2014 /CNW/ - Firm Capital Property
Trust ("FCPT" or the "Trust"), (TSXV: FCD.UN) is
pleased to announce it has entered into a binding agreement to
acquire a 50% interest in a 135 unit multi-residential complex (the
"Property") located in Ottawa,
Ontario with the balance being acquired by others that may
include related parties of the Trust. The purchase price for the
Property is approximately $11.2
million (excluding closing costs), of which the Trust will
pay approximately $5.6 million
(excluding closing costs) for its 50% participation. The
acquisition is expected to close during Q4/2014.
ACQUISITION DETAILS:
The Property is comprised of 135
units situated in two multi-residential buildings located in the
Carlington sector of Ottawa. The
Property has an attractive suite mix consisting of spacious one and
two bedroom multi-residential units and is currently 95.6%
occupied. The Property is being acquired for approximately
$83,000 per unit, which is well below
replacement cost. The capitalization rate for the Property is
approximately 6.0%. The acquisition of the Property represents the
first multi-residential acquisition for the Trust and while it is
expected to be initially neutral to AFFO, it diversifies the
Trust's cash flow into stable multi-residential income. Upon
closing, the Trust will generate cash flow from all of its targeted
asset classes.
The funding required to acquire the Property will be sourced
from a combination of cash, the assumption of an existing first
mortgage from a Canadian Chartered Bank and the arrangement of a
new second mortgage financing from a Canadian Chartered Bank.
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