Press release from CNW Group
Dundee International REIT announces update on Deutsche Post leases
Monday, June 24, 2013
Dundee International REIT announces update on Deutsche Post leases17:51 EDT Monday, June 24, 2013
This news release contains forward looking information that is based upon assumptions and is subject to risks and uncertainties as indicated in the cautionary note contained within this press release.
TORONTO, June 24, 2013 /CNW/ - DUNDEE INTERNATIONAL REIT (DI.UN - TSX) announced today that it is currently in discussions with Deutsche Post in respect of its 2014 lease termination rights. Deutsche Post has the right to terminate leases in respect of 59 properties in Dundee International REIT's portfolio, effective July 1, 2014, provided that it provides notice by June 30, 2013. Deutsche Post has exercised such right in respect of five properties, comprising an aggregate gross leasable area of 613,000 square feet and contributing approximately 3.2% to the REIT's current GRI. The REIT is continuing its discussions with Deutsche Post in respect of the remaining 54 properties subject to termination rights, and has agreed with Deutsche Post to extend the deadline for providing notice of termination to August 31, 2013 in order to explore mutually beneficial alternatives with Deutsche Post. The REIT's team in Germany will focus its efforts to release the space in these five terminated properties, and will also pursue disposition and redevelopment opportunities.
"Diversifying our portfolio and improving the quality of our long-term cash flow remains a key objective for Dundee International REIT. With approximately $864 million of acquisitions completed and under contract year-to-date, we have transformed our asset base, added globally recognized names to our tenant roster and reduced the contribution from our largest tenant Deutsche Post from approximately 65% of the Trust's overall GRI at the beginning of 2013 to approximately 38%," said Jane Gavan, CEO of the REIT.
Dundee International REIT is an unincorporated, open-ended real estate investment trust that provides investors with the opportunity to invest in commercial real estate exclusively outside of Canada. Dundee International REIT's portfolio currently consists of approximately 15.2 million square feet of gross leasable area of office, industrial and mixed use properties across Germany. For more information, please visit www.dundeeinternational.com.
This press release may contain forward-looking information within the meaning of applicable securities legislation. Forward looking information is based on a number of assumptions and is subject to a number of risks and uncertainties, many of which are beyond Dundee International REIT's control that could cause actual results to differ materially from those that are disclosed in or implied by such forward-looking information. These risks and uncertainties include, but are not limited to, global and local economic and business conditions; the financial condition of tenants; our ability to refinance maturing debt; leasing risks, including those associated with the ability to lease vacant space; and interest and currency rate functions. Although the REIT is in discussions with Deutsche Post, there can be no assurance that Deutsche Post will not terminate additional leases pursuant to its 2014 lease termination rights. Our objectives and forward-looking statements are based on certain assumptions, including that the Canadian and German economies remain stable, interest rates remain stable, conditions within the real estate market remain consistent, competition for acquisitions remains consistent with the current climate and that the capital markets continue to provide ready access to equity and/or debt. All forward-looking information in this press release speaks as of the date of this press release. Dundee International REIT does not undertake to update any such forward-looking information whether as a result of new information, future events or otherwise. Additional information about these assumptions and risks and uncertainties is contained in Dundee International REIT's filings with securities regulators, including its latest annual information form and MD&A. These filings are also available at Dundee International REIT's website at www.dundeeinternational.com.
SOURCE: Dundee International REIT
For further information:
Michael J. Cooper
P. Jane Gavan
President and Chief Executive Officer
Rene D. Gulliver
Chief Financial Officer