Partners REIT Renews Operating Credit Line with Improved Terms
May 18 2011 - 3:50PM
Marketwired
Partners Real Estate Investment Trust (Partners REIT) (TSX VENTURE:
PAR.UN) announced today that it has renewed its Operating Credit
Line with TD Bank through May 15, 2013 for an amount of $5.8
million, with upward expansion, replacing the prior facility. The
new facility bears interest at a rate equal to the Bank's prime
rate plus 2.25% per annum or the Bank's Acceptance stamping fee
plus 3.25% per annum, down from the previous rates of 3.50% and
4.50%, respectively. The facility directly interfaces with the
REIT's bank account for efficient cash management purposes.
The renewed facility was utilized, in part, to complete the
acquisition of Centuria Urban Village, a food and drug store
anchored high-rise mixed use retail and residential property
located in Kelowna, British Columbia. The purchase price of
approximately $8.9 million was satisfied with cash from the
proceeds of the REIT's recently completed Convertible Unsecured
Subordinated Debenture Offering and the REIT's new line of credit.
The properties on an annualized basis currently generate Net
Operating Income of approximately $650,000 and will generate
approximately $550,000 in incremental Funds From Operations. The
transaction closed on May 16, 2011.
"We are pleased to extend our credit facility with TD Bank on
favourable and flexible terms and to add our first British Columbia
property, extending our geographic presence and further
strengthening our property portfolio," commented Adam Gant, Chief
Executive Officer.
About Partners REIT
Partners REIT is a growth-oriented real estate investment trust,
which currently owns (directly or indirectly) eighteen retail
properties located in British Columbia, Ontario, Manitoba and
Quebec, aggregating approximately 1.3 million square feet of
leaseable space. Partners REIT focuses on expanding and managing a
portfolio of retail and mixed-use community and neighbourhood
shopping centres located in both primary and secondary markets
across Canada.
Forward-looking Statements
Certain statements included in this press release constitute
forward-looking statements, including, but not limited to, those
identified by the expressions "expect," "will" and similar
expressions to the extent they relate to Partners REIT. The
forward-looking statements are not historical facts but reflect
Partners REIT's current expectations regarding future results or
events. These forward looking statements are subject to a number of
risks and uncertainties that could cause actual results or events
to differ materially from current expectations, including the
integration of the Acquisition with our property portfolio, our
expectations regarding an increase in incremental funds as a result
of the Acquisition, our intention to continue to grow and diversify
our portfolio, access to capital, regulatory approvals, intended
acquisitions and general economic and industry conditions. Although
Partners REIT believes that the assumptions inherent in the
forward-looking statements are reasonable, forward-looking
statements are not guarantees of future performance and,
accordingly, readers are cautioned not to place undue reliance on
such statements due to the inherent uncertainty therein.
Neither the 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.
Contacts: Partners Real Estate Investment Trust Patrick Miniutti
President and Chief Operating Officer (250) 595-9328
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