TORONTO, Jan. 14, 2019 /CNW/ - Firm Capital Property
Trust ("FCPT" or the "Trust") (TSXV: FCD.UN) is
pleased to announce the acquisition of a 50% interest in seven
retail properties located in Alberta, Nova
Scotia, Saskatchewan,
Ontario and Quebec with Crombie Real Estate Investment
Trust ("Crombie REIT") (the "Portfolio"). The
acquisition price for 100% of the Portfolio is approximately
$83.2 million, excluding transaction costs. The Trust's
portion of the acquisition price is approximately $41.6
million. As a result of the Portfolio acquisition, the Trust's
current portfolio will increase by approximately 20% to
$263 million.
The Portfolio is comprised of seven properties totaling 296,376
square feet with six of the properties being anchored by Sobeys
owned grocery stores and one property being anchored with Shoppers
Drug Mart. The Portfolio is 100% occupied and currently owned by
Crombie REIT. The Trust and Crombie REIT will enter into a
co-ownership arrangement such that the Trust will own 50% and
Crombie REIT will own 50% of the Portfolio.
Property
|
Address
|
City
|
Province
|
Anchor
Tenant
|
Total Property
GLA
|
Coliseum
Safeway
|
8118 - 118 Avenue
NW
|
Edmonton
|
AB
|
Safeway
|
44,308
|
Forest Hills,
Cole Harbour
|
2 Forest Hills
Parkway
|
Dartmouth
|
NS
|
Sobeys
|
43,585
|
13th Ave
Regina
Safeway
|
2915 13th
Ave
|
Regina
|
SK
|
Safeway
|
40,717
|
Russell
Lake
|
268 Baker
Dr
|
Dartmouth
|
NS
|
Sobeys
|
61,845
|
University
Park
|
2231 East
Quance St
|
Regina
|
SK
|
Sobeys
|
37,219
|
Barrie
|
409 Bayfield
St
|
Barrie
|
ON
|
Fresh Co
|
47,742
|
Montreal –
Westminster
|
1 Westminster
Ave N
|
Montreal
|
QC
|
Shoppers
Drug Mart
|
20,960
|
The Portfolio is being financed through a combination of
existing cash resources (including the Trust's credit facility) and
new and existing mortgages. The Portfolio is expected to close
during Q1/2019 and is expected to be immediately accretive to AFFO.
The Return on Investment for the transaction is approximately
10.5%. The Portfolio will be managed by Crombie REIT.
"We are pleased to be able to partner with one of Canada's premier owner and operators of
grocery-anchored retail properties." said Robert 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 Realty Partners 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.
For the complete financial statements, Management's Discussion
& Analysis and supplementary information, please visit
www.sedar.com or the Trust's website 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. 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.
Neither the 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. Additional information about the Trust is available at
www.firmcapital.com or www.sedar.com.
SOURCE Firm Capital Property Trust