TORONTO,
June 9, 2016 /CNW/ - Firm
Capital Property Trust ("FCPT" or the "Trust") (TSXV:
FCD.UN) is pleased to announce the acquisition of a 40% interest in
The Whitby Mall and Thickson Place two retail properties located in
Whitby, Ontario (the
"Portfolio"). The acquisition price for 100% of the
Portfolio is approximately $75.3
million, excluding transaction costs. The properties are
located directly across from each other providing a strategic
benefit and long term synergies. As a result of the Portfolio
acquisition, the Trust will increase the size of its current
portfolio by approximately 25% to $157
million.
The Whitby Mall which is located at 1615 Dundas
Street East, Whitby Ontario is a
374,811 square foot mixed use commercial property anchored by
Sobeys with a strong mix of retail, office and medical tenants
together with repositioning opportunities. The property is
currently 83% occupied. The property is being acquired from a
third party.
Thickson Place which is located at 80 Thickson
Road South, Whitby Ontario is a
104,808 square foot retail property anchored by Metro and the LCBO.
The property is currently 100% occupied. The property is
currently owned 100% by First Capital Realty Inc.
The initial acquisition of The Whitby Mall is
being financed through existing cash resources and through the
Trust's revolving credit facility. The acquisition of Thickson
Place which is expected to close in early July, will be funded
through debt to be arranged on The Whitby Mall and Thickson
Place.
The acquisition is expected to be immediately
accretive to AFFO. Management of the Trust expects the AFFO payout
ratio of the Trust to drop below 85% and the leverage of the Trust
to increase slightly to approximately 53% of Gross Book Value.
The joint venture will be comprised of the Trust
for 40%, First Capital Realty for 50%, and 10% will be acquired by
a syndicate group. Both properties will be managed by First Capital
Realty Inc. "We are pleased to be able to partner with one of
Canada's premier owners and
managers of grocery anchored, retail-focused properties on this
acquisition" said Bob McKee
President and CEO of the Trust.
ABOUT FIRM CAPITAL PROPERTY TRUST (TSXV
:FCD.UN)
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