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DISTRIBUTION IN CANADA ONLY AND IS
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TORONTO, May 9, 2019 /CNW/ - Firm Capital Property Trust
("FCPT" or the "Trust"), (TSXV: FCD.UN) is pleased to
announce that it has closed its previously announced agreement to
acquire (the "Acquisition") from First Capital Realty Inc.
and an affiliate thereof (collectively, "First Capital") a
50% non-managing interest in six net-leased primarily grocery
anchored shopping centres located in Ontario and Quebec (the "Acquisition
Portfolio"). The acquisition price for 100% of the
Acquisition Portfolio was approximately $266
million, excluding transaction costs. The Trust's portion of
the acquisition price was approximately $133
million.
The Acquisition Portfolio is comprised of six properties
totaling 1,022,600 square feet of GLA (at a 100% interest) located
in Ottawa, Ontario; Nepean, Ontario; Repentigny, Quebec; and Gatineau, Quebec. All six of the properties
are anchored by high quality tenants including Canadian Tire, IGA,
Loblaws, Walmart, and Shoppers Drug Mart, among others. The
Acquisition Portfolio is approximately 97% occupied and has a
remaining weighted average lease term ("WALT") of
approximately 6.1 years. The Trust and First Capital have entered
into a co-ownership arrangement such that the Trust and First
Capital will each own half of the Acquisition Portfolio. First
Capital also property manages the Acquisition Portfolio.
The Trust's portion of the purchase price for the Acquisition
Portfolio was financed through a combination of new and assumed
mortgages as well as the net proceeds from FCPT's recently
completed marketed equity offering and concurrent private placement
of Trust Units. The new and assumed mortgages total approximately
$92.8 million (at the Trust's
interest) for a 3.52% Weighted Average Interest Rate with a
Weighted Average Term to Maturity ("WATM") of approximately
5.4 years.
DISTRIBUTION REINVESTMENT PLAN & UNIT PURCHASE
PLAN
The Trust has in place a Distribution Reinvestment Plan
("DRIP") and Unit Purchase Plan (the "Plan"). Under
the terms of the DRIP, FCPT's unitholders may elect to
automatically reinvest all or a portion of their regular monthly
distributions in additional Trust Units, without incurring
brokerage fees or commissions. Under the terms of the Plan, FCPT's
unitholders may purchase a minimum of $1,000 of Units per month and maximum purchases
of up to $12,000 per annum.
Management and trustees own approximately 7% of the issued and
outstanding Trust Units of the Trust.
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 own a
diversified property portfolio of multi-residential, flex
industrial, net lease convenience retail, and core service provider
professional space. In addition to standalone 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.
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 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 TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in policies of the TSX Venture
Exchange) accepts responsibility for the adequacy or accuracy of
this release.
SOURCE Firm Capital Property Trust