TORONTO, Aug. 31, 2015 /CNW/ - Firm Capital Property Trust
("FCPT" or the "Trust") (TSXV: FCD.UN) is pleased to
announce the closing of its previously announced acquisition of a
70% interest in seven industrial buildings located in Waterloo, Ontario (the "Portfolio"). The
acquisition price for 100% of the Portfolio is approximately
$43.3 million, excluding transaction
costs. The capitalization rate is approximately 7%. As a result of
the Portfolio acquisition, the Trust has increased the size of its
current portfolio by approximately 32% to $124 million. The entire Portfolio is being
financed through the assumption of $29.0
million of first mortgages at an interest rate of 2.95% and
existing cash resources.
As previously announced and as a result of closing of the
Portfolio acquisition, the Trust has increased its annualized cash
distribution by 5% to $0.42 per Trust
Unit per annum or $0.035 per Trust
Unit per month from $0.40 per Trust
Unit per annum or $0.033333 per Trust
Unit per month commencing in November, 2015 payable in December,
2015. This is the Trust's third distribution increase since its
inception in late 2012 and represents total aggregate distribution
increases of 20%. We anticipate this increased distribution to
result in an AFFO payout ratio of below 85%.
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 Properties Inc., through
a structure focused on an alignment of interests with the Trust
sources, syndicates and property and asset manages investments on
behalf of the Trust.
Further information about the Trust can be found by
selecting the Firm Capital Property Trust link at
www.firmcapital.com.
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 closing of the acquisition of the Portfolio. 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.
SOURCE Firm Capital Property Trust