MONTRÉAL, Aug. 5, 2022
/CNW Telbec/ - PRO Real Estate Investment Trust ("PROREIT" or the
"REIT") (TSX: PRV.UN) today announced the successful completion of
its previously announced joint venture agreement with Crestpoint
Real Estate Investments Ltd. ("Crestpoint") to jointly own an
industrial-focused portfolio of 42 properties located in
Atlantic Canada, including 41
properties in Dartmouth, Halifax
Regional Municipality of Nova
Scotia, and one property in Moncton, New Brunswick. The portfolio is
comprised of nearly 3.1 million square feet of gross leasable area
(GLA).
As part of the joint venture transaction, which is immediately
accretive to earnings, PROREIT and Crestpoint each acquired a 50%
interest in 21 primarily industrial properties currently owned by a
third party, for a total purchase price of $228 million (before closing costs). In
conjunction with the acquisition, PROREIT sold a 50% interest in 21
of its currently owned properties to Crestpoint, having a total
value of $227 million, for a total
consideration to PROREIT of $113.5
million (before closing costs).
PROREIT, through its wholly owned property management business
Compass Commercial Realty, acts as the sole property manager for
the entire 42-property portfolio and collects industry standard
fees.
PROREIT 50% Acquisition
Interest
Property
Address
|
GLA
(Square
feet)
|
202 & 204 Brownlow
Ave, Dartmouth, NS
|
213,789
|
201 Brownlow Ave and 50
Eileen Stubbs Ave, Dartmouth, NS
|
159,792
|
7 Mellor Ave,
Dartmouth, NS
|
122,480
|
71 Thornhill Dr,
Dartmouth, NS
|
100,056
|
131, 133 & 135
Ilsley Ave, Dartmouth, NS
|
98,461
|
121 Ilsley Ave,
Dartmouth, NS
|
97,864
|
75 Akerley Blvd,
Dartmouth, NS
|
96,368
|
100 Ilsley Ave,
Dartmouth, NS
|
76,385
|
100 Wright Ave,
Dartmouth, NS
|
76,071
|
51 Raddall Ave,
Dartmouth, NS
|
70,141
|
170 Joseph Zatzman Dr,
Dartmouth, NS
|
64,895
|
105 Akerley Blvd,
Dartmouth, NS
|
58,180
|
50 Troop Ave,
Dartmouth, NS
|
53,911
|
32 Troop Ave,
Dartmouth, NS
|
47,790
|
81 Wright Ave,
Dartmouth, NS
|
45,130
|
109 Ilsley Ave,
Dartmouth, NS
|
45,082
|
95 Akerley Blvd,
Dartmouth, NS
|
38,106
|
30 Simmonds Dr,
Dartmouth, NS
|
38,000
|
50 Garland Ave,
Dartmouth, NS
|
35,537
|
10 Thornhill Dr,
Dartmouth, NS
|
28,630
|
16 Garland Ave,
Dartmouth, NS
|
10,888
|
Total
|
1,577,556
|
PROREIT's acquisition in the 50% interest in the 21 properties
amounted to a cost to PROREIT of approximately $114 million (excluding closing costs), financed
from the proceeds of a 50% interest in approximately $148 million of new fixed-rate mortgages.
The balance of approximately $40
million was satisfied with cash on hand, including cash from
the proceeds of the sale of a 50% interest in existing properties
to Crestpoint.
PROREIT 50% Interest
Sale
Property
Address
|
GLA
(Square
Feet)
|
26-28 Topple Dr,
Dartmouth, NS
|
201,110
|
320-340 Wright Ave,
Dartmouth, NS
|
170,752
|
10 Morris Dr,
Dartmouth, NS
|
118,952
|
222 Edinburgh Dr,
Moncton, NB
|
94,682
|
11 Morris Dr,
Dartmouth, NS
|
90,173
|
120 Troop Ave,
Dartmouth, NS
|
87,214
|
55 Akerley Blvd,
Dartmouth, NS
|
75,398
|
50 Akerley Blvd,
Dartmouth, NS
|
62,980
|
10 Vidito Dr,
Dartmouth, NS
|
61,988
|
101 Thornhill Dr,
Dartmouth, NS
|
61,551
|
30-58 Mosher Dr,
Dartmouth, NS
|
56,899
|
29-59 Mosher Dr,
Dartmouth, NS
|
54,741
|
171 John Savage Ave,
Dartmouth, NS
|
50,000
|
71 Ilsley Ave,
Dartmouth, NS
|
47,072
|
101 Ilsley Ave,
Dartmouth, NS
|
46,968
|
81 Ilsley Ave,
Dartmouth, NS
|
46,873
|
58 Wright Ave,
Dartmouth, NS
|
43,000
|
40 Thornhill Dr,
Dartmouth, NS
|
32,139
|
50 Thornhill Dr,
Dartmouth, NS
|
32,063
|
60 Thornhill Dr,
Dartmouth, NS
|
31,929
|
45 Wright Ave,
Dartmouth, NS
|
15,360
|
Total
|
1,481,844
|
PROREIT's sale of a 50% interest in 21 of its currently owned
properties resulted in a consideration of approximately
$49 million in cash received from
Crestpoint (before closing costs), with Crestpoint also assuming a
50% interest in approximately $129
million of fixed-rate mortgages currently held by
PROREIT.
The balance of the proceeds to PROREIT, net of the acquisition
payment, will be used to reduce the REIT's credit facility.
About PROREIT
PROREIT (TSX: PRV.UN) is an unincorporated open-ended real
estate investment trust established pursuant to a declaration of
trust under the laws of the Province of Ontario. Founded in 2013, PROREIT owns a
portfolio of high-quality commercial real estate properties in
Canada, with a strong industrial
focus in robust secondary markets.
About Crestpoint
Crestpoint Real Estate Investments Ltd. is a commercial real
estate and mortgage investment manager dedicated to providing
investors with direct access to a diversified portfolio of
commercial real estate assets. Crestpoint's current portfolio has a
market value in excess of $8.5
billion and is comprised of over 31 million square feet of
commercial properties. Crestpoint is part of the Connor, Clark
& Lunn Financial Group, a multiboutique asset management
company that provides investment management products and services
to institutional and high net-worth clients. With offices across
Canada and in Chicago, London, and Gurugram, India, Connor, Clark & Lunn Financial
Group and its affiliates are collectively responsible for the
management of approximately $104
billion in assets. For more information, please
visit: www.crestpoint.ca.
Forward-Looking
Statements
This press release contains forward looking statements and
forward-looking information (collectively, "forward-looking
statements") within the meaning of applicable securities
legislation, including statements relating to certain expectations,
projections, plans and other information related to REIT's business
strategy and future plans. Forward-looking statements are based on
a number of assumptions and are subject to a number of risks and
uncertainties, many of which are beyond PROREIT's control, that
could cause actual results and events to differ materially from
those that are disclosed in or implied by such forward-looking
statements.
Forward-looking statements contained in this press release
include, without limitation, statements pertaining to the expected
performance of the transaction and its future impact on PROREIT's
results. PROREIT's objectives and forward-looking statements are
based on certain assumptions, including that (i) PROREIT will
receive financing on favourable terms; (ii) the future level of
indebtedness of PROREIT and its future growth potential will remain
consistent with the REIT's current expectations; (iii) there will
be no changes to tax laws adversely affecting PROREIT's financing
capacity or operations; (iv) the impact of the current economic
climate and the current global financial conditions on PROREIT's
operations, including its financing capacity and asset value, will
remain consistent with PROREIT's current expectations; (v) the
performance of PROREIT's investments in Canada will proceed on a basis consistent with
PROREIT's current expectations; and (vi) capital markets will
provide PROREIT with readily available access to equity and/or
debt.
The forward-looking statements contained in this news release
are expressly qualified in their entirety by this cautionary
statement. All forward-looking statements in this press release are
made as of the date of this press release. PROREIT does not
undertake to update any such forward-looking information whether as
a result of new information, future events or otherwise, except as
required by law.
Additional information about these assumptions and risks and
uncertainties is contained under "Risk Factors" in PROREIT's latest
annual information form and "Risk and Uncertainties" in PROREIT's
management's discussion and analysis for the year ended
December 31, 2021, which are
available under PROREIT's profile on SEDAR at www.sedar.com.
SOURCE PROREIT