MONTRÉAL, March 16, 2020 /CNW/ -
PRO Real Estate Investment Trust ("PROREIT" or the "REIT") (TSX:
PRV.UN) is pleased to announce the closing of its acquisition of a
100% interest in a 135,494 square-foot light industrial
property in Moncton, New
Brunswick. The temperature-controlled building was acquired
for $8.36 million before closing
costs, representing a going-in capitalization rate of 6.80%.
Built in 1979 and expanded in 2000, the building is located
adjacent to the Trans-Canada Highway at 123 Price Street in
Moncton. With a warehouse clear
height of 18 to 50 feet, the building is 100% occupied by a
national logistics company with a long-term lease that includes
annual rent steps up until December 2032. The property
includes an additional 6 acres of land that could be used for
building expansion or other opportunities.
"With the addition of this light industrial building,
strategically located in the gateway city of Moncton, we are further strengthening our
portfolio and increasing our exposure to the strong industrial
sector," said Jim Beckerleg,
President and CEO, PROREIT.
The $8.36 million purchase price
was financed by the proceeds from a new $5.75 million 7-year first mortgage at a
historically-low rate of 2.64%. The balance of the purchase price
of $2.6 million was satisfied through
a draw on available operating facilities that were previously paid
down in a recent equity financing.
About PROREIT
PROREIT (www.proreit.com) is an unincorporated open-ended real
estate investment trust owning a diversified portfolio of 93
commercial properties across Canada representing over 4.5 million square
feet of GLA. Established in March
2013, PROREIT is mainly focused on strong primary and
secondary markets in Québec, Atlantic
Canada and Ontario, with
selective exposure in Western
Canada.
SOURCE PROREIT