Pure Industrial Real Estate Trust Announces Agreement to Acquire Fully Leased Industrial Property for $8.25 Million and Redemption of Restricted Units
VANCOUVER, June 4, 2012 /PRNewswire/ - Pure Industrial Real Estate Trust ("PIRET" or the "REIT") (TSXV: AAR.UN) today announced it has entered into an agreement to acquire a fully leased single tenant, income producing industrial property for a total purchase price of $8,250,000.
The property is located at 6800 Rexwood Road in Mississauga, Ontario. The property has a total rentable area of 101,039 square feet and is 100% leased to a strong regional tenant on a fully net basis. PIRET intends to close the acquisition on an all cash basis. Following closing, PIRET intends to place a new first mortgage on the property at a loan-to-value of 60% with an anticipated interest rate of not more than 3.75%.
The acquisition is expected to close within the month of June and will be acquired at a going-in capitalization rate of 6.74%. After completing this transaction, PIRET's portfolio will total approximately 5.2 million square feet, 38% of which are located in the Greater Toronto Area.
Redemption of Restricted Units
PIRET also announces today the issuance of 57,694 Class A Units (the "Units") of the REIT as of May 28, 2012 to three trustees who exercised the right to redeem Restricted Units which vested under PIRET's Restricted Unit Plan on March 6, 2012 and May 8, 2012. The Units were issued at a redemption value of $4.46 per Unit for total value of $257,315.24.
After the issuance of the Units, PIRET has 66,464,697 Units issued and outstanding.
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.
TSX Venture Exchange - AAR.UN
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. The forward-looking statements contained in this news release are based on certain key expectations and assumptions made by PIRET, including: the intention to close the acquisition on an all cash basis, the intention to place a new mortgage on the property at a loan-to-value of 60% with an anticipated interest rate of not more than 3.75% and the expectation to close within the month of June.
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 satisfy the conditions to complete the acquisition, the inability to obtain mortgage financing on expected terms, 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.
SOURCE Pure Industrial Real Estate Trust (PIRET)