Pure Multi-Family REIT LP Announces the Closing of a Previously Announced Property Acquisition for US$55.95 Million And New Credit Facility
Nov 29, 2017, 16:48 ET
VANCOUVER, Nov. 29, 2017 /PRNewswire/ - Pure Multi-Family REIT LP ("Pure Multi-Family") (TSXV: RUF.U, RUF.UN; RUF.DB.U;OTCQX: PMULF) announces the successful closing of the previously announced multi-family apartment community Fillmore Apartments (the "Property"), located in Phoenix, Arizona for a purchase price of US$55.95 million. Upon closing, the Property will be rebranded as PURE Fillmore Apartments.
Developed in 2016, the Property is an institutional quality multi-family asset comprising 230 units with an average unit size of 934 square feet. The Property is located on 4.0 acres near Fillmore Street and Seventh Avenue and offers residents a unique value proposition that includes views of downtown Phoenix.
Pure Multi-Family funded the purchase of the Property with cash on hand and debt from a new credit facility (as described below).
Credit Facility
Pure Multi-Family announced today that it has entered into an agreement with a Canadian chartered bank for a new secured credit facility (the "Facility") totaling US$50 million with an accordion feature that allows for increased borrowing capacity of up to US$100 million.
The Facility expires in November 2020 and includes a 12-month extension option. Amounts drawn under the Facility will bear interest at a variable rate initially equal to: (i) LIBOR plus a margin ranging from 1.55% to 2.20% per annum, or (ii) a base rate plus a margin ranging from 0.55% to 1.20% per annum.
"We are pleased to implement this credit facility, which along with our recently announced property management internalization, is a major step forward in Pure Multi-Family's growth initiatives," said CEO Steve Evans. "The credit facility will provide us with added financial flexibility and more efficient cash management, which we expect will have a positive impact on our recurring AFFO. We are using this credit facility in the acquisition of PURE Fillmore Apartments as we grow our Phoenix portfolio with the newly constructed property with market leading amenities in a dynamic location that we believe is well positioned for future growth. PURE Fillmore Apartments is a beautiful property with unique luxury amenities in a rapidly changing and highly demanded submarket."
Upon completion of the acquisition of PURE Fillmore Apartments, Pure Multi-Family's portfolio consists of 22 multi-family properties comprising an aggregate of 7,085 residential units, situated on 351 acres of land.
About Pure Multi-Family REIT LP
Pure Multi-Family is a Canadian based, publicly traded vehicle which offers investors exclusive exposure to attractive, institutional quality US multi-family real estate assets.
Additional information about Pure Multi-Family is available at www.puremultifamily.com or www.sedar.com.
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 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: (i) the credit facility will provide us with added financial flexibility and more efficient cash management, which we expect will have a positive impact on our recurring AFFO; and (ii) we are using this credit facility in the acquisition of PURE Fillmore Apartments as we grow our Phoenix portfolio with the newly constructed property with market leading amenities in a dynamic location that we believe is well positioned for future growth. The forward-looking statements contained in this news release are based on certain key expectations and assumptions made by Pure Multi-Family, including: (i) reasonably stable economies in the markets in which Pure Multi-Family operates; (ii) potential growth opportunities in the Phoenix market; and (iii) Pure Multi-Family's ability to integrate PURE Fillmore Apartments into its portfolio.
Although Pure Multi-Family 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 Pure Multi-Family 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, without limitation, those factors that can be found under "Risk Factors" in Pure Multi-Family's Annual Information Form dated March 17, 2017 and under "Risks and Uncertainties" in Pure Multi-Family's Management's Discussion and Analysis dated November 15, 2017, both of which are available on SEDAR at www.sedar.com.
The forward-looking statements contained in this news release represent Pure Multi-Family's expectations as of the date hereof, and are subject to change after such date. Pure Multi-Family disclaims any intention or obligation to update or revise any forward-looking statements whether as a result.
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 Multi-Family REIT LP