MONTRÉAL, Aug. 21,
2024 /CNW/ - PRO Real Estate Investment Trust
("PROREIT" or the "REIT") (TSXV: PRV.UN) is pleased to announce
that it has entered into a binding agreement to acquire a 100%
interest in a strategically located industrial building in
Dorval, a suburb of Montréal,
Québec, adjacent to Montréal-Trudeau International Airport, for a
total purchase price of $32.6 million
(excluding closing costs), representing a going-in capitalization
rate of approximately 6.7%.
The purchase price will be financed through a new $21.2
million five-year first mortgage at a rate of 5.10%, with the
balance funded by proceeds from previously announced non-core
property sales and a draw on available operating facilities.
"As we continue to successfully execute on our capital recycling
program, we are pleased with this accretive acquisition which
aligns with our growth strategy and medium-term goals of expanding
our industrial footprint to 90% of base rent and $2 billion in total asset value,"
said Gordon Lawlor, President and CEO, PROREIT.
High-quality, light industrial building
The single-tenant industrial building, located at 2945 André
Avenue in Dorval, Québec,
comprises 134,340 square feet of gross leasable area ("GLA") and
features a warehouse clear height of 24-27 feet, along with an
efficient loading configuration. It is fully occupied by a national
logistics company under a long-term lease that includes annual rent
escalations and a renewal option. The tenant has been in place at
the building since 2013.
Upon completion of this acquisition, PROREIT's portfolio will
consist of 115 income-producing commercial properties, including a
50% ownership interest in 42 investment properties, totaling
approximately 6.1 million square feet of GLA. This acquisition will
further increase the portfolio's exposure to the industrial sector,
bringing it to approximately 86% of GLA and 80% of base rent on a
pro forma basis. The acquisition is subject to customary closing
conditions and is expected to close in the third quarter of
2024.
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
PROREIT'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 generally can be identified by the
use of forward-looking terminology such as "outlook", "objective",
"may", "will", "expect", "intent", "estimate", "anticipate",
"believe", "should", "plans", or "continue", or similar expressions
suggesting future outcomes or events. Forward-looking statements
contained in this press release include, without limitation,
statements pertaining to the execution by PROREIT of its growth
strategy, the proposed increase of PROREIT's footprint in the light
industrial sector, the contemplated acquisition of an industrial
building for a total purchase price of approximately $32.6 million (excluding closing costs), the
timing thereof and the financing terms of such acquisition, and the
medium-term goals (three to five years) of reaching $2
billion in assets and 90% of industrial base rent.
PROREIT's objectives and forward-looking statements are based on
its current assumptions about future events, 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 PROREIT'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.
Without limiting the foregoing, the medium-term (three to five
years) targets of PROREIT are based on PROREIT's current business
plan and strategies and are not intended to be a forecast of future
results. The medium-term targets contemplate the REIT's historical
growth and certain assumptions including but not limited to (i)
current global capital market conditions, (ii) access to capital,
(iii) interest rate exposure, (iv) availability of high-quality
industrial properties for acquisitions, (v) dispositions of retail
and office properties, and (vi) capacity to finance acquisitions on
an accretive basis.
Although PROREIT believes that the expectations reflected in
such forward-looking statements are reasonable, it can give no
assurance that these expectations will prove to have been correct,
and since forward-looking statements inherently involve risks and
uncertainties, undue reliance should not be placed on such
statements. Certain material factors or assumptions are applied in
making forward-looking statements, and actual results may differ
materially from those expressed or implied in such forward-looking
statements. 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 six months
ended June 30, 2024, which are available under PROREIT's
profile on SEDAR+ at www.sedarplus.ca
SOURCE Pro Real Estate Investment Trust