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Press release from CNW Group

Pure Industrial Real Estate Trust Announces Closing of $358.5 Million Portfolio Acquisition

Wednesday, May 15, 2013

Pure Industrial Real Estate Trust Announces Closing of $358.5 Million Portfolio Acquisition

17:59 EDT Wednesday, May 15, 2013

/NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES/

VANCOUVER, May 15, 2013 /CNW/ - Pure Industrial Real Estate Trust ("PIRET") (TSX: AAR.UN) today announced the successful closing of its previously announced acquisition (the "Acquisition") of 59 industrial properties (the "Portfolio") for a total purchase price of $358.5 million, representing a going-in capitalization rate of approximately 6.33%.

The Portfolio is comprised of approximately 3.7 million square feet of gross leasable area ("GLA"), which are located throughout the Greater Toronto Area ("GTA") and Southwestern Ontario. Approximately 93% of the properties by GLA are located within the GTA: Vaughan (33%), Brampton (23%), Mississauga (21%) and other GTA locations (16%).  The Portfolio is concentrated in mature, fully developed industrial parks encompassing over 207 acres of land and benefitting from proximity to the 400 series highways, Pearson International Airport, local labour forces and key infrastructure facilities. The Portfolio has a weighted average remaining lease term of 3.5 years and an average building age of only 20.7 years. Furthermore, over 64% of the properties are occupied by single tenants, with the balance of the assets being multi-tenanted. The properties are predominantly used for warehousing and distribution.  Additional information about the Portfolio is included in PIRET's short form prospectus dated April 24, 2013, available on SEDAR at www.sedar.com.

PIRET funded the Acquisition using a combination of cash from PIRET's bought deal offering of subscription receipts (each, a "Subscription Receipt") that closed on May 1, 2013, the assumption of mortgage debt in the amount of approximately $25 million and mortgage debt in the amount of approximately $190 million (before financing costs and closing adjustments) for an open 12-month term, which PIRET expects to replace with permanent first mortgage financing within six months from the completion of the Acquisition.

Kevan Gorrie, PIRET's President, commented, "The acquisition of these properties significantly enhances our scale in the GTA, Canada's largest industrial market.  It further demonstrates our ability to execute on our disciplined acquisition strategy which focuses on high quality industrial properties, that are well located with convenient access to major transportation routes and proximity to densely populated markets."  Mr. Gorrie added, "Over 90% of PIRET's portfolio is now located in the GTA, Vancouver, Edmonton and Calgary, the leading industrial markets in Canada."

Concurrent with the closing of the Acquisition, one class A unit (each, a "Unit") of PIRET was issued in exchange for each outstanding Subscription Receipt without payment of additional consideration, which resulted in the issuance of 36,455,000 Units. Trading of the Subscription Receipts has been halted and the TSX has advised that the Subscription Receipts will be de-listed at the close of trading on May 16, 2013.  The Units issued upon exchange of the Subscription Receipts have been listed on the TSX.

PIRET's Units are listed on the TSX under the symbol AAR.UN.  After the issuance of the Units in exchange for the Subscription Receipts, PIRET has 135,716,055 Units issued and outstanding.

After completing the Acquisition, PIRET's portfolio will be comprised of 156 properties representing approximately 11.8 million square feet of GLA. PIRET's year-to-date acquisitions are summarized below:

             
Property/Portfolio Municipality
and Province
# of
Properties
GLA
(sf)
Price
($million)
Going In
Cap
Rate
Occupancy
13055 80th Avenue Surrey, BC 1 38,232 $    4.60 5.97% 100%
18111 Blundell Road Richmond, BC 1 412,375 44.10 6.21% 100%
Edmonton Portfolio Edmonton, AB 3 264,941 21.80 6.74% 100%
16111 Blundell Road Richmond, BC 1 279,742 32.32 6.04% 100%
East-West Portfolio Various 4 263,896 25.33 8.13% 100%
261106 Wagon Wheel
   Crescent
Balzac, AB 1 58,772 8.85 7.07% 100%
GTA/ON Portfolio Various, ON 59 3,663,221 358.5 6.33%* 93.9%*
    70 4,981,179 $ 495.5 6.42% 95.5%
* Stated occupancy and going in cap rate do not include premises leased under a head lease with the vendor.  Including the vendor head lease will result in an effective occupancy rate of 98.3%.

About Pure Industrial Real Estate Trust

PIRET is an unincorporated, open-ended investment trust that acquires, owns and operates 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 internally managed publicly traded REIT in Canada that offers investors exclusive exposure to Canada's industrial asset class.

Additional information about PIRET is available at www.piret.ca or www.sedar.com.

 

THE TORONTO STOCK EXCHANGE HAS NOT REVIEWED AND DOES NOT ACCEPT RESPONSIBILITY FOR THE ADEQUACY OR THE ACCURACY OF THIS 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: agreig@piret.ca
www.piret.ca (check out our new website) 

Toronto Stock Exchange - AAR.UN, AAR.R

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