- Entered unconditional sale agreement for additional
$5.4 million retail property
MONTREAL, Feb. 15,
2024 /CNW/ - PRO Real Estate Investment Trust
("PROREIT" or the "REIT") (TSX: PRV.UN) today announced that
it has completed the sale of two non-core properties totalling
approximately 124,000 square feet of gross leasable
area ("GLA") for total gross proceeds of $20.7 million, excluding closing costs.
Proceeds of the sale were used to repay approximately $16.0 million in related mortgages, with the
balance used for general business purposes.
In addition, PROREIT has entered into an unconditional sale
agreement in respect of a 10,000 square foot non-core
retail property for approximately $5.4 million. The sale is expected to be
completed in the next 30 days and is subject to customary
closing conditions.
"We are pleased with the sale of these non-core assets as we
continue to optimize both our portfolio and balance sheet,
while focusing on our organic growth in the industrial
property sector," said Gordon G. Lawlor, President
and Chief Executive Officer of PROREIT. "From the proceeds of
these sales, we used $8.3 million to reduce the mortgage
maturities due in 2024 from approximately $33.2 million to $24.9 million."
Transaction Details
The details for the completed dispositions, which represent the
first portfolio transactions in fiscal 2024, are as follows:
Disposal
Date
(2024)
|
Sector
|
Address
|
GLA
(sq.ft.)
|
Gross
Proceeds
|
Use of
Proceeds
|
Mortgage
Repayment
|
General
Business
(Including
Closing
Costs)
|
February 2
|
Retail
|
5110 St. Margaret's
Bay Road, Upper
Tantallon, NS
|
59,085
|
$13.5M
|
$8.8M
|
$4.7M
|
February 9
|
Industrial
|
5655 de Marseille
Street, Montreal, QC
(held for
redevelopment)
|
65,000
|
$7.2M
|
$7.2M
|
--
|
|
TOTAL
|
|
124,085
|
$20.7M
|
$16.0M
|
$4.7M
|
Following the two completed dispositions, PROREIT owns
121 investment properties (including a 50% ownership
interest in 42 investment properties), representing
approximately 6.2 million square feet of GLA. As of
February 15, 2024, the industrial
segment accounts for 82.9% of GLA and 74.4% of base rent, up
from 81.3% and 71.7%, respectively, at
September 30, 2023.
About PROREIT
PROREIT (TSX:PRV.UN) is an unincorporated open-ended real
estate investment trust established pursuant to a declaration of
trust under the laws of the Province of Ontario. Founded in 2013, PROREIT owns a
portfolio of high-quality commercial real estate properties in
Canada, with a strong industrial
focus in robust secondary markets.
For more information on PROREIT, please visit the website
at: https://proreit.com.
Forward-Looking
Statements
This press release contains forward-looking statements and
forward-looking information (collectively, "forward-looking
statements") within the meaning of applicable securities
legislation, including statements relating to certain expectations,
projections, growth plans and other information related to REIT's
business strategy and future plans. Forward-looking statements are
based on a number of assumptions and are subject to a number of
risks and uncertainties, many of which are beyond PROREIT's
control, that could cause actual results and events to differ
materially from those that are disclosed in or implied by such
forward-looking statements.
Forward-looking statements contained in this press release
include, without limitation, statements pertaining to the
anticipated sale of a retail property for approximately
$5.4 million and the terms and
timing of the transaction, the execution by PROREIT of its growth
strategy and the optimization by PROREIT of its portfolio.
PROREIT's objectives and forward-looking statements are based on
certain assumptions, including that (i) PROREIT will receive
financing on favourable terms; (ii) the future level of
indebtedness of PROREIT and its future growth potential will remain
consistent with the REIT's current expectations; (iii) there will
be no changes to tax laws adversely affecting PROREIT's financing
capacity or operations; (iv) the impact of the current economic
climate and the current global financial conditions on PROREIT's
operations, including its financing capacity and asset value, will
remain consistent with PROREIT's current expectations; (v) the
performance of PROREIT's investments in Canada will proceed on a basis consistent with
PROREIT's current expectations; and (vi) capital markets will
provide PROREIT with readily available access to equity and/or
debt.
The forward-looking statements contained in this news release
are expressly qualified in their entirety by this cautionary
statement. All forward-looking statements in this press release are
made as of the date of this press release. PROREIT does not
undertake to update any such forward-looking information whether as
a result of new information, future events or otherwise, except as
required by law.
Additional information about these assumptions and risks and
uncertainties is contained under "Risk Factors" in PROREIT's latest
annual information form and "Risk and Uncertainties" in PROREIT's
management's discussion and analysis for the three and nine month
periods ended September 30, 2023, which are available
under PROREIT's profile on SEDAR+ at www.sedarplus.ca.
SOURCE PROREIT