Press release from CNW Group
Pure Industrial Real Estate Trust Announces Agreement to Expand Existing Property
Tuesday, August 06, 2013
Pure Industrial Real Estate Trust Announces Agreement to Expand Existing Property19:37 EDT Tuesday, August 06, 2013
VANCOUVER, Aug. 6, 2013 /CNW/ - Pure Industrial Real Estate Trust ("PIRET") (TSX: AAR.UN) today announced that it has entered into an agreement with ContainerWorld Forwarding Services Inc. ("ContainerWorld") to expand their facility in Richmond, British Columbia by approximately 151,200 square feet.
ContainerWorld currently occupies a 484,429 square feet industrial property located at 16133 Blundell Road, Richmond, British Columbia. The expansion will increase their gross leasable area to approximately 635,600 square feet, representing one of the largest single industrial properties in Greater Vancouver.
PIRET is developing the expansion in partnership with Hopewell Development, which originally developed the site in 2008. Pending development approvals by applicable government authorities, ContainerWorld is expected to commence occupancy of the expansion premises on July 1, 2014, for a term of 10 years. Additionally, ContainerWorld has agreed to extend the lease on their existing premises by approximately 6 years, making it co-terminous with the lease expiry for the expansion premises.
The total project cost is estimated to be $13.9 million, funded by a construction loan representing approximately 63% of the total project costs and the remaining with PIRET's working capital. PIRET acquired the properties located at 16131 and 16133 Blundell Road, Richmond in December, 2012, for an aggregate purchase price of $102,460,000. The expansion is expected to be accretive to the portfolio upon completion of the project.
Kevan Gorrie, President of PIRET, commented, "We're very pleased and excited to grow our relationship with a valued tenant, and to expand one of the highest-quality distribution facilities in Western Canada. This project demonstrates our ability and commitment to add value for our unitholders by taking advantage of opportunities for highly accretive growth within our portfolio. It also highlights our ability to invest strategically without the need to access the capital markets, by utilizing our strong balance sheet."
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.
PIRET's units are listed on the Toronto Stock Exchange under the symbol AAR.UN. Additional information about the PIRET is available at www.piret.ca or www.sedar.com.
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. Forward looking statements in this news release include the following: (i) pending development approvals by applicable government authorities, ContainerWorld is expected to commence occupancy of the expansion premises on July 1, 2014, for a term of 10 years; and (ii) the expansion is expected to be accretive to the portfolio upon completion of the project.
The forward-looking statements contained in this news release are based on certain key expectations and assumptions made by PIRET, including: expectations and assumptions concerning receipt of required governmental approvals, the satisfaction of other conditions to complete the expansion of the property and that the expansion will result in accretive growth within PIRET's portfolio. 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 obtain necessary governmental and regulatory approvals or to complete the expansion within the expected budget and timeline, 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 AND DOES NOT ACCEPT RESPONSIBILITY FOR THE ADEQUACY OR THE ACCURACY OF THIS RELEASE.
SOURCE: Pure Industrial Real Estate Trust (PIRET)
For further information:
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
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