TORONTO,
Feb. 23, 2016 /CNW/ - Firm Capital
Property Trust ("FCPT" or the "Trust") (TSXV :
FCD.UN) is pleased to announce that it is has closed the sale of
its interest in two retail properties totaling 19,330 sq. ft.
and closed a $23.7 million new first
mortgage on the 100% interest in a co-owned retail portfolio.
Asset Sale
The properties sold were a
10,542 sq. ft. retail strip centre in Ontario that sold for gross proceeds of
$3,400,000 and a 8,788 sq. ft. land
leased retail property in British
Columbia with approximately seven years remaining on the
land lease for gross proceeds of $557,000. The Trust's share of the gross proceeds
is approximately $2.8 million.
The properties were unencumbered at the time of the sale and the
proceeds will be used to fund future acquisitions. The transactions
represent a one-time gain on Adjusted Funds from Operations
("AFFO") after costs of approximately $0.07 per trust unit.
New Mortgage
The Trust entered in a new
five year $23.7 million floating rate
mortgage that was swapped to a fixed rate of 2.92% for the term of
the mortgage. The Trust's portion of the new financing
increased the cash available to fund future acquisitions by
$4.7 million. The refinancing
is approximately $0.01 per unit
accretive to AFFO before the deployment of the excess cash.
The Trust currently has cash resources of
approximately $11.4 million and the
full $8.0 million available on its
revolving credit facility to fund future acquisitions and
development.
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'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.
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. 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 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.
Neither the TSX Venture Exchange nor its
Regulation Services Provider (as that term is defined in the
policies of the TSX Venture Exchange) accepts responsibility for
the adequacy or accuracy of this release.
SOURCE Firm Capital Property Trust