VANCOUVER, March 16 /PRNewswire-FirstCall/ - Pure Industrial Real Estate Trust ("PIRET" or the "REIT") (TSXV: AAR.UN) today announced the successful closing of a single tenant, income producing industrial property for a total purchase price of $6,050,000 (the "Guelph Asset") and that it has entered into an agreement to acquire a single tenant income producing property located in Delta, British Columbia (the "Delta Asset").
The Guelph Asset, located at 1 Rutherford Court, Guelph, Ontario, is a 101,310 square foot facility situated on 5.17 acres, and leased to the Unisync Group on a fully net basis until June 30, 2016. The property is being acquired for total purchase price of $6,050,000, at a favourable going-in cap rate of 7.25%.
Toronto based Unisync Group Limited (www.unisyncgroup.com) is a leading independent designer, manufacturer and manager of career apparel solutions in Canada, and has been selected as one of the BEST Employers in Canada for 2011. Unisync's customer base extends across Canada and into the United States, encompassing marquee companies including Home Hardware, Securitas, Loblaws, Burger King, Best Buy, Tim Hortons, Casino Rama, Staples and Pizza Pizza.
PIRET funded the acquisitions with equity from the $34.5 million bought deal financing that was announced on January 27, 2011. PIRET acquired the Guelph Asset on an all cash basis and will subsequently use this property to secure an operating facility.
The Delta Asset is located at 7660 Vantage Way, in Delta, British Columbia, and is a 73,396 square foot facility featuring an additional 2.2 acres of land with separate street frontage on 76th Street. 7660 Vantage Way is leased to Tristar Industries until September 30, 2028 and the lease is fully net to PIRET. Tristar has two five year renewal options.
Tristar Industries (www.tristarind.com) provides specialized manufacturing, fabrication and assembly services to the marine, pulp and paper, power generation, mining and oil & gas sectors. Founded in 1973, Tristar is privately held.
PIRET's total purchase price for the Delta Asset will be $9,300,000, which represents a favourable going in cap rate of 6.74% based on the in place income. PIRET will assume the existing financing and will fund the balance of the purchase price with equity from the $34.5 million bought deal financing that was announced on January 27, 2011.
PIRET has completed more than $190 million in acquisitions since January 2010 and is Canada's only pure-play industrial real estate trust.
PIRET's units are listed on the TSX Venture Exchange under the symbol AAR.UN. For more information on PIRET, visit our website at www.piret.ca.
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.
About the 2011 TSX Venture 50
The 2011 TSX Venture 50 is comprised of ten companies from each of five sectors: Clean Technology, Mining, Oil & Gas, Diversified Industries, and Technology & Life Sciences. The 2011 TSX Venture 50 companies were chosen based on the following criteria, with equal weighting assigned to each: share price appreciation, trading volume, market capitalization growth and analyst coverage. PIRET was selected to the 2011 TSX Venture 50 in the Diversified Industries category.
THE TSX VENTURE EXCHANGE HAS NOT REVIEWED AND DOES NOT ACCEPT RESPONSIBILITY FOR THE ADEQUACY OR THE ACCURACY OF THIS RELEASE.
SOURCE Pure Industrial Real Estate Trust (PIRET)