WINNIPEG, MB, Dec. 22,
2023 /CNW/ - Artis Real Estate Investment Trust
("Artis" or the "REIT") (TSX: AX.UN) announced today that it has
entered into an unconditional agreement to sell a portfolio of
eight Canadian retail properties (the "Canadian Retail Portfolio")
for an aggregate sale price of $222.0
million.
The Canadian Retail Portfolio comprises four properties located
in Calgary, Alberta, totalling
293,660 square feet of leasable area and four properties located in
Winnipeg, Manitoba, totalling
301,539 square feet of leasable area. The sale price of
$222.0 million represents a price per
square foot of $373, and the
properties have approximately $80.5
million of mortgage financing. Proceeds from the transaction
will be used to reduce overall debt.
The sale price for the Canadian Retail Portfolio is in line with
the REIT's International Financial Reporting Standards ("IFRS")
fair values reported at September 30,
2023.
"The sale of this portfolio of Canadian retail properties is an
important step towards achieving our near-term objective of
strengthening our balance sheet, reducing debt and enhancing
liquidity," said Samir Manji,
President and Chief Executive Officer of Artis. "We continue to
believe that our ongoing initiatives, including asset sales,
capital re-allocation, and liquidity-enhancement, will enable us to
navigate the current environment. This transaction reflects the
quality of Artis's real estate portfolio. We are also seeing very
strong interest in Artis's retail portfolio located in other
Western Canadian markets with the recent drop in bond yields
further strengthening the large number of buyers who have expressed
interest in one or more of these markets. This will position us
well in our efforts to maximize value on dispositions that Artis is
pursuing."
The transaction is subject to routine Competition Bureau
approval and is expected to close in the first half of 2024.
Artis is a diversified Canadian real estate investment trust
with a portfolio of industrial, office and retail properties in
Canada and the United States. Artis's vision is to build
a best-in-class asset management and investment platform focused on
growing net asset value per unit and distributions for investors
through debt repayment, return of capital and value investing in
real estate.
Cautionary
Statements
This press release contains forward-looking statements. For this
purpose, any statements contained herein that are not statements of
historical fact may be deemed to be forward-looking statements.
Without limiting the foregoing, the words "expects", "anticipates",
"intends", "estimates", "projects", "seeks", and similar
expressions or variations of such words and phrases or state that
certain actions, events or results ''may'', ''would'' or ''will''
occur or be achieved are intended to identify forward-looking
statements. Particularly, statements regarding building Artis into
a best-in-class asset management and investment platform focused on
value investing in real estate, the REIT's ability to strengthen
its balance sheet, enhance its liquidity and meet its forthcoming
debt obligations and use of proceeds of the transaction are
forward-looking statements. Forward-looking statements are based on
a number of factors and assumptions which have been used to develop
such statements, but which may prove to be incorrect. Artis cannot
assure investors that actual results will be consistent with any
forward-looking statements and Artis assumes no obligation to
update or revise such forward-looking statements to reflect actual
events or new circumstances. All forward-looking statements
contained in this press release are qualified by this cautionary
statement.
Suite 600-220 Portage Avenue
Winnipeg, MB R3C
0A5
T 204.947.1250 F 204.947.0453
www.artisreit.com
AX.UN on the TSX
SOURCE Artis Real Estate Investment Trust