Press release from Marketwire
Retrocom REIT Announces Acquisition of Two Walmart Anchored Shopping Centres
Thursday, August 08, 2013
Retrocom REIT Announces Acquisition of Two Walmart Anchored Shopping Centres17:12 EDT Thursday, August 08, 2013
TORONTO, ONTARIO--(Marketwired - Aug. 8, 2013) -
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Retrocom Real Estate Investment Trust (the "REIT" or "Retrocom") (TSX:RMM.UN) today announced that it has waived due diligence conditions in connection with a purchase agreement with Walmart Canada Realty Inc. and SmartCentres Realty Inc. to acquire two Walmart-anchored shopping centres for a total initial consideration of approximately $61.6 million (the "Acquisition"). The shopping centres are located in Mission, British Columbia, and Fergus, Ontario. Together they consist of approximately 226,000 square feet of leasable area where Walmart accounts for over 80% of gross revenues.
With the addition of these two shopping centres, Walmart's position as Retrocom's top tenant now increases to nine locations totaling over 760,000 sq.ft., representing 11.5% of the REIT's leaseable area.
The Mission Retail Centre is located approximately 60 km from downtown Vancouver. It is situated within Mission's primary retail node along Lougheed Highway (BC Highway 7) that serves as the main thoroughfare along the north shore of the Fraser Valley. The 9.2 acre site is newly developed with five buildings totaling 116,500 sq.ft., inclusive of a 95,000 sq.ft. Walmart Supercentre and 8,600 sq.ft. Dollarama. The initial consideration is for the purchase of 107,500 sq.ft. of in-place tenancies, with the potential of an additional 9,000 sq.ft. of future leases to be purchased on an earn-out basis.
The Fergus Retail Centre is located approximately 20 km from Guelph, and is situated along Highway 6. The 8.5 acre site is newly developed and will comprise four buildings totaling 109,500 sq.ft., inclusive of a 95,000 sq.ft. Walmart Supercentre and 8,000 sq.ft. LCBO. The initial consideration is for the purchase of 107,500 sq.ft. of in-place tenancies, with an additional 2,000 sq.ft. of future space to be purchased on an earn-out basis.
Retrocom intends to fund the purchase price by placing conventional first mortgages on the two properties, the issuance of limited partnership units to SmartCentres Realty Inc. that are exchangeable for Units of Retrocom REIT, and cash on hand.
The Acquisition is expected to close on or about August 27, 2013 and is subject to the satisfaction of customary closing conditions.
About Retrocom REIT
Retrocom REIT is an unincorporated, open-end real estate investment trust which focuses on owning and acquiring retail properties across Canada with the goal of enhancing long-term Unitholder value.
This press release may contain forward-looking statements. In some cases, forward-looking statements can be identified by the use of words such as "may", "will", "should", "expect", "plan", "anticipate", "believe", "estimate", "predict", "potential", "continue", and by discussions of strategies that involve risks and uncertainties. The forward-looking statements are based on certain key expectations and assumptions made by the REIT regarding, among other things, the use of the net proceeds from the offering, and the closing of the acquisition. By their nature, forward-looking statements involve numerous assumptions, inherent risks and uncertainties, both general and specific, that contribute to the possibility that the predictions, forecasts, projections and various future events will not occur. Although management of the REIT believes that the expectations reflected in the forward-looking statements are reasonable, there can be no assurance that future results, levels of activity, performance or achievements will occur as anticipated. Neither the REIT nor any other person assumes responsibility for the accuracy and completeness of any forward-looking statements, and no one has any obligation to update or revise any forward-looking statement, whether as a result of new information, future events or such other factors which affect this information, except as required by law.
FOR FURTHER INFORMATION PLEASE CONTACT:
Retrocom Real Estate Investment Trust
Chief Executive Officer
(416) 741-7993 (FAX)