Firm Capital Property Trust Announces Accretive Acquisition, Disposition and Refinancing Initiatives
December 08 2022 - 11:51AM
Firm Capital Property Trust (“FCPT” or the “Trust”) (TSX : FCD.UN)
is pleased to provide the following updates:
- $6.2 Million Acquisition of Two
Edmonton Industrial Properties;
- $44.0 Million Montreal Industrial
Mortgage Finance Update;
- Manufactured Homes Communities
(“MHC”) Potential Acquisitions; and
- $2.7 Million Sale Update of Two
Non-Core Assets
$6.2 MILLION ACQUISITION OF TWO EDMONTON
INDUSTRIAL PROPERTIESThe $6.2 million acquisition in the
existing Edmonton Joint Venture Partnership of a 50% interest in
two multi-tenant industrial properties with a combined area of
68,000 square feet, located in Edmonton, Alberta (the
“Properties”).
The Properties offer excellent access to major
vehicular and rail transportation infrastructure. The Properties
are a short drive to both downtown Edmonton, the Edmonton
International Airport and in close proximity to the Trust’s
existing Edmonton Industrial properties. The properties have a
total of 19 units with bay sizes from 3,200 to 4,000 square feet
are leased to 14 tenants. The Properties are 100% occupied and
immediately accretive to AFFO. The Properties are being acquired at
a going in capitalization rate in excess of 9.0% and $91 per square
foot.
The Trust will be acquiring the Properties such
that the Trust will own 50% and private clients affiliated with
certain members of senior management and the board of trustees of
the Trust (the “Private Partners”) owning the remaining 50% in a
side-by-side alignment of interest structure and being the same
partners as the other Edmonton Industrial Portfolio. The
acquisition of the Properties will be financed, in part, with a new
$1.8 million first mortgage and the assumption of an existing $2.4
million first mortgage, both from a Canadian Chartered Bank. The
remaining equity requirement of $2.0 million (excluding transaction
costs), will be split 50% by the Trust and 50% by the Private
Partners. The Trust’s portion of the equity will be funded through
existing cash and or credit facility resources.
Proforma the transaction, the Trust will have a
50% interest in a combined Alberta industrial portfolio of 486,300
square feet with an in-place occupancy of 88% versus 82% at
Q3/2022. Closing of the Properties is anticipated during the fourth
quarter of 2022.
$44.0 MILLION MONTREAL INDUSTRIAL
MORTGAGE FINANCE UPDATEThe Trust has entered into an early
renewal of the mortgage on our Montreal Industrial Portfolio for
proceeds of $44.0 million at a 4.88% interest rate, amortizing and
for a term of seven years. The previous mortgage was at a 3.98%
interest rate and was set to mature in August 2023. As part of the
early repayment of the mortgage the lender paid out an early break
fee of approximately $0.6 million to the property partnership. The
Trust has a 50% interest in the mortgage and will use the proceeds
from the early termination to reduce the Trust’s credit
facility.
MHC POTENTIAL
ACQUISITIONSPursuing to the Trust’s 50% joint venture with
SunPark Communities, LP., the Trust is in due diligence for the
purchase of three new communities representing a total of 170 land
lease pads. Two communities are located in Ontario and one in
Calgary, Alberta. Should due diligence be waved, closing is
anticipated to be the early part of the first quarter of 2023.
Anticipated acquisition capitalization rates are in excess of
6.20%. Further details will be provided once due diligence waiver
has occurred.
SALE UPDATE OF TWO NON-CORE
ASSETSThe Trust has entered into a binding agreement to
sell a 11,247 square foot retail property in Pembroke, Ontario for
gross proceed of approximately $2.7 million with the closing
expected to occur during the fourth quarter of 2022. The Trust has
also entered in a binding agreement to sell the Trust’s 39,420
square foot medical office building in Barrie, Ontario for gross
proceed of approximately $10.5 million with the closing expected to
occur during the fourth quarter of 2022.
ABOUT FIRM CAPITAL PROPERTY TRUST (TSX :
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 INFORMATIONThis
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.
For further information, please contact: |
Robert McKee |
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Sandy Poklar |
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President & Chief Executive Officer |
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Chief Financial Officer |
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(416) 635-0221 |
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(416) 635-0221 |
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For Investor Relations information, please
contact: |
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Victoria Moayedi |
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Director, Investor Relations |
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(416) 635-0221 |
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