The Globe and Mail

Go to the Globe and Mail homepage

Jump to main navigationJump to main content

Globe Investor

News Sources

Take control of your investments with the latest investing news and analysis

Press release from CNW Group

Pure Industrial Real Estate Trust Successfully Closes Previously Announced Acquisition of Two Industrial Portfolios for $43.55 Million

Tuesday, October 09, 2012

Pure Industrial Real Estate Trust Successfully Closes Previously Announced Acquisition of Two Industrial Portfolios for $43.55 Million20:25 EDT Tuesday, October 09, 2012/NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES./VANCOUVER, Oct. 9, 2012 /CNW/ - Pure Industrial Real Estate Trust ("PIRET" or the "REIT") (TSX: AAR.UN) today announced the successful closing of the purchases of six fully leased, single-tenant, income producing industrial properties representing 535,110 square feet of gross leasable area ("GLA") located in Ontario and Alberta, for a total purchase price of $43,550,000. The transactions consist of: (a) a portfolio of two properties located in Calgary, Alberta (collectively, the "Calgary Properties") and (b) a portfolio of four buildings located in Kitchener, Burlington, and Vaughan, Ontario (collectively, the "Ontario Portfolio").The Calgary Properties consist of two single-tenant properties comprising an aggregate GLA of 72,549 square feet which are 100% leased to a high quality regional tenant under a 10 year, triple net lease. The properties, acquired at a purchase price of $8,650,000, representing a 7.30% going-in capitalization rate, are located at 7303 & 7403 30th Street SE, Calgary, Alberta.  PIRET acquired the properties on an all cash basis using proceeds from its bought deal financing that closed on September 12, 2012.  PIRET intends to obtain mortgage financing in respect of the Calgary Properties in an amount up to 65% of their purchase price.The Ontario Portfolio consists of four single-tenant industrial buildings comprising an aggregate GLA of 462,561 square feet. The properties are all located in Ontario at 120 Trillium Drive, Kitchener, 845 Laurentian Drive, Burlington, 5330 South Service Road, Burlington, and 55 Doney Crescent, Vaughan.  The Ontario Portfolio is currently 100% leased to a variety of high quality national and regional tenants with a weighted average remaining lease term of approximately 6.1 years.  The purchase price for the Ontario Portfolio was $34,900,000, representing a 6.85% going-in capitalization rate.  PIRET acquired the Ontario Portfolio using proceeds from its bought deal financing that closed on September 12, 2012 and with new mortgages that represent approximately 60% of the total purchase price at an interest rate of 3.55% per annum over a seven year term.After completing these acquisitions, PIRET's portfolio will total 83 properties with GLA of approximately 5.9 million square feet and total land holdings of approximately 441acres.The REIT's year-to-date acquisitions are summarized below:       AddressMunicipality and Province# ofPropertiesGLA(sf)Price($million)Going-InCap RateOccupancy7830 Vantage WayDelta, BC146,300$    4.456.50%100%925 - 931 Brock RoadPickering, ON2325,68022.128.00%93%1345 Redwood AvenueWinnipeg, MB1112,3409.707.76%100%2440 Winston Park DriveOakville, ON194,98810.566.75%100%230 Barmac DriveNorth York, ON1118,2257.286.50%100%515 Welham RoadBarrie, ON145,1702.678.00%100%12155 - 15th StreetEdmonton, AB1142,58316.838.00%100%2030 Notre Dame AvenueWinnipeg, MB1108,2388.107.68%100%6800 Rexwood RoadMississauga, ON1101,0398.256.74%100%15 Turbo DriveEdmonton, AB127,0714.257.96%100%Western PortfolioAlberta & BC5237,14148.007.10%100%Calgary PropertiesCalgary, AB272,5498.657.30%100%Ontario PortfolioVaughan, Burlington,Kitchener, ON4462,56134.906.85%100%  221,890,313$ 185.767.27%99%About Pure Industrial Real Estate Trust 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 largest publicly traded vehicle in Canada that offers investors exclusive exposure to Canada's industrial asset class.Additional information about PIRET is available at or 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 "anticipate", "plan", "expect", "may", "will", "intend", "should", and similar expressions. These 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. The forward-looking statements contained in this news release are based on certain key expectations and assumptions made by PIRET, including: PIRET intends to obtain mortgage financing in respect of the Calgary Properties in an amount up to 65% of their purchase price.Although PIRET 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 PIRET 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, but are not limited to, the failure to satisfy the conditions to complete the acquisition, the inability to obtain mortgage financing on expected terms, competitive factors in the industries in which PIRET operates, prevailing economic conditions, and other factors, many of which are beyond the control of PIRET.The forward-looking statements contained in this news release represent PIRET's expectations as of the date hereof, and are subject to change after such date. PIRET disclaims any intention or obligation to update or revise any forward-looking statements whether as a result of new information, future events or otherwise, except as required under applicable securities regulations.The Toronto Stock Exchange has not reviewed nor approved the contents of this press release and does not accept responsibility for the adequacy or accuracy of this press release. SOURCE: Pure Industrial Real Estate Trust (PIRET)For further information: Andrew Greig, Director of Investor Relations Pure Industrial Real Estate Trust Suite 910, 925 West Georgia Street Vancouver, BC  V6C 3L2 Phone: (604) 681-5959 or (888) 681-5959 E-mail: TSX - AAR.UN