Pure Industrial Real Estate Trust announces $46.9 million of property acquisitions and $26.5 million equity financing
January 10 2012 - 7:01AM
PR Newswire (Canada)
NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR
DISSEMINATION IN THE UNITED STATES TORONTO, Jan. 10, 2012 /CNW/ -
Pure Industrial Real Estate Trust ("PIRET") announced today that it
has entered into agreements to acquire $46.9 million of income
producing properties (the "Acquisitions"), consisting of four
industrial properties representing approximately 579,318 square
feet of gross leasable area ("GLA") located in Ontario, British
Columbia and Manitoba. The Acquisitions consist of a portfolio of
two buildings and excess land located in Pickering, Ontario (the
"Pickering Property"), and single properties located in Oakville,
Ontario (the "Oakville Property"), Delta, British Columbia (the
"Delta Property") and Winnipeg, Manitoba (the "Winnipeg Property").
The properties are being acquired at a weighted average going-in
capitalization rate of 7.53%. PIRET has also entered into an
agreement to sell to a syndicate of underwriters led by Canaccord
Genuity Corp. and Dundee Securities Ltd. (the "Underwriters"), on a
bought deal basis, 6,300,000 trust units ("Units") at a price of
$4.20 per Unit for gross proceeds to PIRET of approximately $26.5
million (the "Financing"). PIRET has also granted the Underwriters
an over-allotment option to purchase up to an additional 945,000
Units on the same terms and conditions, exercisable at any time, in
whole or in part, up to 30 days after the closing of the Financing.
The Financing is expected to close on or about January 31, 2012 and
is subject to regulatory approval. The proceeds from the Financing
will be used to fund the Acquisitions, repay short-term debt and
for general corporate purposes. The Pickering Property consists of
one single tenant industrial building and one multi-tenant
industrial building comprising an aggregate of approximately
325,680 square feet of GLA and approximately six acres of land that
can accommodate two additional buildings totaling approximately
115,000 square feet of additional GLA. The Pickering Property is
currently 93% leased to a variety of high quality national and
regional tenants with a weighted average lease term of
approximately 3.6 years. The Oakville Property represents
approximately 94,998 square feet of GLA and is 100% leased to a
high quality national tenant with a weighted average lease term of
approximately 7.5 years. The purchase price for the Oakville
Property is $10.6 million, representing a 6.75% capitalization
rate. The Delta Property represents approximately 46,300 square
feet of GLA and is 100% leased to a single tenant with a remaining
lease term of approximately 4.7 years. The purchase price for the
Delta Property is $4.45 million, representing a 6.5% capitalization
rate. The Winnipeg Property represents approximately 112,340 square
feet of GLA and is 100% leased to a single high quality
international tenant with a remaining lease term of approximately
four years. The purchase price for the Winnipeg Property is $9.7
million, representing a 7.76% capitalization rate. The purchase
price of the Acquisitions is expected to be settled with the
proceeds of the Financing and approximately $27.1 million of
mortgage financing bearing an anticipated weighted average interest
rate of 3.8%. Darren Latoski, Co-CEO of PIRET, said "PIRET is
continuing to identify high quality, well tenanted industrial
properties across Canada which we can acquire on an accretive
basis. PIRET is continuing to take advantage of our
well-established pipeline of acquisition opportunities and our
access to capital in order to strengthen our status as Canada's
only publicly traded REIT focused exclusively on industrial real
estate." ********* About Pure Industrial Real Estate Trust PIRET is
an unincorporated, open-ended investment trust established for the
purposes of acquiring, owning and operating a diversified portfolio
of income-producing industrial properties in primary markets across
Canada. PIRET focuses exclusively on investing in industrial
properties and is the only publicly traded vehicle in Canada that
offers investors exclusive exposure to Canada's industrial asset
class. Additional information about PIRET is available at
www.piret.ca or www.sedar.com. For more information please contact:
Andrew Greig, Director of Investor Relations Pure
Industrial Real Estate Trust (PIRET) Suite 910, 925 West
Georgia Street Vancouver, BC V6C 3L2 Phone: (604) 681-5959 or
(888) 681-5959 E-mail: agreig@piret.ca www.piret.ca TSX Venture
Exchange - AAR.UN Forward-Looking Information: Certain statements
contained in this news release may constitute forward-looking
statements. Forward-looking statements are often, but not
always, identified by the use of words such as "anticipate",
"plan", "expect", "may", "will", "intend", "should", and similar
expressions. These statements involve known and unknown
risks, uncertainties and other factors that may cause actual
results or events to differ materially from those anticipated in
such forward-looking statements. Forward looking statements in
this news release include that the Financing is expected to close
on or about January 31, 2012 and that the purchase price of the
Acquisitions is expected to be settled with the proceeds of the
Financing. The forward-looking statements contained in this
news release are based on certain key expectations and assumptions
made by PIRET, including: expectations and assumptions concerning
receipt of required regulatory approvals and the satisfaction of
other conditions to the completion of and use of proceeds from the
Financing. Although PIRET believes that the expectations and
assumptions on which the forward-looking statements are based are
reasonable, undue reliance should not be placed on the
forward-looking statements because PIRET can give no assurance that
they will prove to be correct. Since forward-looking
statements address future events and conditions, by their very
nature they involve inherent risks and uncertainties. Actual
results could differ materially from those currently anticipated
due to a number of factors and risks. These include, but are
not limited to, the failure to obtain necessary regulatory
approvals or satisfy the conditions to closing the Financing,
competitive factors in the industries in which PIRET operates,
prevailing economic conditions, and other factors, many of which
are beyond the control of PIRET. The forward-looking statements
contained in this news release represent PIRET's expectations as of
the date hereof, and are subject to change after such date.
PIRET disclaims any intention or obligation to update or revise any
forward-looking statements whether as a result of new information,
future events or otherwise, except as required under applicable
securities regulations. NEITHER THE TSX VENTURE EXCHANGE NOR ITS
REGULATION SERVICES PROVIDER (as that term is defined in the
policies of the TSX Venture Exchange) HAS REVIEWED OR ACCEPTS
RESPONSIBILITY FOR THE ADEQUACY OR THE ACCURACY OF THIS RELEASE.
NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR
DISSEMINATION IN THE UNITED STATES. Pure Industrial Real Estate
Trust (PIRET) CONTACT: Andrew Greig,Director of Investor
RelationsPure Industrial Real Estate Trust (PIRET)Suite 910, 925
West Georgia StreetVancouver, BC V6C 3L2Phone: (604) 681-5959 or
(888) 681-5959E-mail: agreig@piret.cawww.piret.ca
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