Cominar announces closing of acquisition of 68 real estate assets from GE Capital Real Estate
14 September 2012 - 8:32AM
PR Newswire (Canada)
/NOT FOR DISTRIBUTION TO U.S. NEWS WIRE SERVICES OR DISSEMINATION
IN THE U.S./ QUEBEC CITY, Sept. 14, 2012 /CNW Telbec/ - Cominar
Real Estate Investment Trust ("Cominar") announces today that it
has closed its previously announced acquisition of a portfolio of
68 properties in Montréal, Québec City and Ottawa from GE Capital
Real Estate's Canadian equity platform comprising a total of 4.3
million square feet (the "Acquisition"). The acquired portfolio
consists of 14 office buildings (1.5 million square feet) and one
vacant land parcel (3.4 acres) in Ottawa, 23 office properties (1.2
million square feet) and 23 industrial properties (1.3 million
square feet) in Montréal and 4 office properties (200 thousand
square feet) and 3 industrial properties (53 thousand square feet)
in Québec City. Enhanced Geographic Diversification The Acquisition
will increase Cominar's asset base by approximately 14% to 35
million square feet and has a meaningful impact on the REIT's
geographic diversification profile, increasing its Ontario net
operating income ("NOI") contribution from 5% to 11%. Accretive
transaction The Acquisition is expected to be immediately accretive
to Cominar's adjusted funds from operations per unit. In addition,
the Montréal properties acquired provide an attractive opportunity
for further revenue and NOI growth through improved occupancy.
Ottawa Office Portfolio The Ottawa office portfolio consists of 14
office properties totaling 1.5 million square feet and one vacant
land parcel totaling 3.4 acres. The weighted-average occupancy of
this portfolio is 98.5% with a weighted-average lease term of 4.1
years. Québec Portfolio Montréal Portfolio The Montréal
portfolio consists of 23 office properties totaling 1.2
million square feet and 23 industrial properties totaling 1.3
million square feet. The weighted-average occupancy of this
portfolio is 86.6% with a weighted-average lease term of 3.5 years.
As such, there is a potential for additional upside from improved
occupancy in Montréal. Québec City Portfolio The Québec City
portfolio consists of 4 office properties totaling 0.2 million
square feet and 3 industrial properties totaling 53 thousand square
feet. The weighted-average occupancy of this portfolio is 89.8%
with a weighted-average lease term of 3.8 years. PROFILE as at
September 14, 2012 Cominar is the third largest diversified real
estate investment trust in Canada and currently remains the largest
commercial property owner in the Province of Québec. Cominar owns a
real estate portfolio of 482 high-quality properties, consisting of
123 office, 158 retail and 201 industrial and mixed-use buildings
that cover a total area of 35.0 million square feet in Québec,
Ontario, the Atlantic Provinces and Western Canada. Cominar's
objectives are to pay growing cash distributions to unitholders and
to maximize unitholder value by way of proactive management and the
expansion of its portfolio. Forward-Looking Statements This press
release may contain forward-looking statements with respect to
Cominar and its operations, strategy, financial performance
and financial condition. These statements generally can be
identified by the use of forward-looking words such as "may",
"will", "expect", "estimate", "anticipate", "intend",
"believe" or "continue" or the negative thereof or similar
variations. The actual results and performance of Cominar
discussed herein could differ materially from those expressed
or implied by such statements. Such statements are qualified
in their entirety by the inherent risks and uncertainties
surrounding future expectations. Some important factors that could
cause actual results to differ materially from expectations
include, among other things, general economic and market
factors, competition, changes in government regulation and
the factors described under "Risk Factors" in the Annual
Information Form of Cominar. The cautionary statements qualify all
forward-looking statements attributable to Cominar and persons
acting on its behalf. Unless otherwise stated, all
forward-looking statements speak only as of the date of this press
release. COMINAR REAL ESTATE INVESTMENT TRUST CONTACT: Mr. Michel
Dallaire, P.Eng.President and Chief Executive Officer, Cominar Real
Estate InvestmentTrust(418) 681-8151Mr. Michel BerthelotExecutive
Vice President and Chief Financial Officer, Cominar RealEstate
Investment Trust(418) 681-6300 ext. 2266
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