Press release from Marketwire
Partners Real Estate Investment Trust Completes Cobblestone Acquisition
Wednesday, August 21, 2013
Partners Real Estate Investment Trust Completes Cobblestone Acquisition11:27 EDT Wednesday, August 21, 2013
VANCOUVER, BRITISH COLUMBIA--(Marketwired - Aug. 21, 2013) - Partners Real Estate Investment Trust (the "REIT," or "Partners") (TSX:PAR.UN) announced today that it had completed its previously announced acquisition of the Cobblestone Shopping Centre ("Cobblestone,") a 100% economically occupied shopping centre in Grande Prairie, Alberta.
Cobblestone, which was built in 2007 and 2008, is composed of three buildings that in aggregate comprise 42,980 square feet of leasable space. Cobblestone is anchored by Shoppers Drug Mart, TD Canada Trust, Starbucks, Liquor Depot, and Aurora Eye Care. 78% of Cobblestone's rentable area and 81% of its in-place base rental income is generated by national or regional tenants. There is very little near-term rollover with only 2 tenants occupying 12.8% of the space expiring before 2016.
The REIT's purchase price for Cobblestone for approximately $16.6 million, satisfied primarily through a combination of assumed and new mortgages totalling $11.3 million. These mortgages mature in January 2018 and bearing a combined effective interest rate of 4.03%. The balance of the purchase price was satisfied with cash. Cobblestone is expected to generate current in-place annualized Net Operating Income of $1.1 million and $0.7 million in Funds From Operations, with a negligible impact on the REIT's overall capital structure.
"The acquisition of Cobblestone is a very accretive transaction which reflects Partners' strategy of acquiring high-quality, necessity-based and stable properties in strong markets," stated Edward Boomer, the REIT's President and Chief Investment Officer. "We look forward to completing further accretive acquisitions over the balance of 2013."
About Partners REIT
Partners REIT is a growth-oriented real estate investment trust, which currently owns (directly or indirectly) 39 retail properties, well-located in British Columbia, Alberta, Manitoba, Ontario, and Quebec, aggregating approximately 2.7 million square feet of leasable space. Partners REIT focuses on expanding and managing a portfolio of retail and mixed-use community and neighbourhood shopping centres located in both primary and secondary markets across Canada.
FOR FURTHER INFORMATION PLEASE CONTACT:
Partners Real Estate Investment Trust
President & Chief Investment Officer