Pure Industrial Real Estate Trust Announces Agreement to Acquire Two Fully Leased Industrial Properties for $19.5 Million and Closing of Previously Announced $7.28 Million Transaction
VANCOUVER, May 16, 2012 /PRNewswire/ - Pure Industrial Real Estate Trust ("PIRET" or the "REIT") (TSXV: AAR.UN) today announced it has entered into an agreement to acquire two fully leased, single tenant, income producing industrial properties for a total purchase price of $19,500,000.
The properties are located at 515 Welham Road in Barrie, Ontario and 12155 - 154th Street in Edmonton, Alberta. The properties have a combined total rentable area of 187,753 square feet and are 100% leased on a fully net basis for 20 years to a leading private designer and manufacturer of specialized heavy equipment attachments for companies dedicated to servicing the construction, resource, forestry and mining industries. PIRET will acquire the properties on an all cash basis and fund the acquisition with equity from the bought deal financing closed on March 1, 2012. PIRET will finance the assets post-closing with a new first mortgage of up to 65% of the purchase price at an anticipated rate of no more than 3.80%. The assets will be acquired at an attractive going-in capitalization rate of 8.00%.
PIRET also announced today the successful closing of the $7,275,000 previously announced acquisition of the investment property located at 230 Barmac Drive in North York, Ontario. This single tenant property has a total rentable area of 118,225 square feet and is 100% leased to a leading private distributor of apparel that has been in business since 1954. PIRET acquired the property on an all cash basis and funded the acquisition with equity from the bought deal financing closed on March 1, 2012. PIRET will finance the asset post-closing with a new first mortgage of up to 65% of purchase price at an anticipated rate of no more than 3.80%. The asset was acquired at a going-in capitalization rate of 6.50%.
After completing these announced transactions, PIRET's portfolio will total approximately 5.0 million square feet. The REIT's year-to-date acquisitions are summarized below:
|7830 Vantage Way||Delta, BC||46,300||$ 4.5||6.50%||100%|
|925 - 931 Brock Road||Pickering, ON||325,680||22.1||8.00%||93%|
|1345 Redwood Avenue||Winnipeg, BC||112,340||9.7||7.76%||100%|
|2440 Winston Park Drive||Oakville, ON||94,988||10.5||6.75%||100%|
|230 Barmac Drive||North York, ON||118,225||7.3||6.50%||100%|
About Pure Industrial Real Estate Trust (PIRET)
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
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)