TORONTO, July 3, 2018 /CNW/ - Granite Real Estate
Investment Trust ("Granite") (TSX: GRT.UN / NYSE: GRP.U)
announced today that it has entered into an agreement to acquire a
warehouse and logistics property in Erfurt, Germany consisting of approximately 717,000
square feet of gross leasable area. The purchase price of
euro 53.9 million represents an
in-going yield of approximately 5.4% excluding transaction costs.
The property is located in one of Granite's core European markets
and builds on Granite's existing presence in the German logistics
market. The property which was built in 2010 is fully leased with a
weighted average lease term of approximately 4.7 years. The primary
tenant is LGI TechLog GmbH, a German subsidiary of Elanders Group,
a public Swedish company traded on the NASDAQ OMX Nordic Exchange,
which is a global provider of supply chain management and
e-commerce logistics services. The transaction will be immediately
accretive to funds from operations and adjusted funds from
operations and will be funded from a combination of cash on hand
and Granite's credit facility. The transaction is expected to close
during the third quarter of 2018.
Granite also announced today that it recently entered into an
agreement to sell its office properties in Aurora, Ontario that serve as the corporate
headquarters for Magna International Inc. ("Magna"). The sale will
generate total gross proceeds of $60
million representing a capitalization rate of approximately
6.2%. The sale will be accretive to Granite's net asset value and
is subject to customary closing conditions with the closing
expected to take place towards the end of the third quarter of
2018.
Michael Forsayeth, Granite's CEO,
commented that "Together with the sale of Magna's corporate
headquarters being net asset value accretive and consistent with
Granite's strategy, these transactions will further reduce
Granite's Magna concentration."
ABOUT GRANITE
Granite is a Canadian-based REIT engaged in the acquisition,
development, ownership and management of predominantly industrial,
warehouse and logistics properties in North America and Europe. Granite owns 90 rental income
properties representing approximately 34 million square feet of
leasable area. Through the thoughtful deployment of its balance
sheet and selective dispositions, Granite is continuing to build a
high quality, globally diversified industrial real estate
business.
OTHER INFORMATION
Copies of financial data and other publicly filed documents
about Granite are available through the internet on the Canadian
Securities Administrators' Systems for Electronic Document Analysis
and Retrieval (SEDAR) which can be accessed at
www.sedar.com and on the United States Securities and Exchange
Commission's Electronic Data Gathering, Analysis and Retrieval
System (EDGAR) which can be accessed at www.sec.gov. For further
information, please see our website at www.granitereit.com or
contact Michael Forsayeth, Chief
Executive Officer, at 647-925-7600 or Ilias
Konstantopoulos, Chief Financial Officer, at
647-925-7540.
FORWARD LOOKING STATEMENTS
This press release may contain statements that, to the extent
they are not recitations of historical fact, constitute
"forward-looking statements" or "forward-looking information"
within the meaning of applicable securities legislation, including
the United States Securities Act of 1933, as amended, the
United States Securities Exchange Act of 1934, as amended,
and applicable Canadian securities legislation. Forward-looking
statements and forward-looking information may include, among
others, statements regarding Granite's plans, goals, strategies,
intentions, beliefs, estimates, costs, objectives, economic
performance, expectations, or foresight or the assumptions
underlying any of the foregoing. Words such as "may", "would",
"could", "will", "likely", "expect", "anticipate", "believe",
"intend", "plan", "forecast", "project", "estimate", "seek",
"objective" and similar expressions are used to identify
forward-looking statements and forward-looking information.
Forward-looking statements and forward-looking information should
not be read as guarantees of performance or results and will not
necessarily be accurate indications of whether or the times at or
by which such performance or results will be achieved. Undue
reliance should not be placed on such statements. Forward-looking
statements and forward-looking information are based on information
available at the time and/or management's good faith assumptions
and analyses made in light of its perception of historical trends,
current conditions and expected future developments, as well as
other factors management believes are appropriate in the
circumstances, and are subject to known and unknown risks,
uncertainties and other unpredictable factors, many of which are
beyond Granite's control, that could cause actual events or results
to differ materially from such forward-looking statements and
forward-looking information. Important factors that could cause
such differences include, but are not limited to, the risks set
forth in the annual information form of Granite REIT and Granite GP
dated March 1, 2018 (the "Annual
Information Form"). The "Risk Factors" section of the Annual
Information Form also contains information about the material
factors or assumptions underlying such forward-looking statements
and forward-looking information. Forward-looking statements and
forward-looking information speak only as of the date the
statements and information were made and unless otherwise required
by applicable securities laws, Granite expressly disclaims any
intention and undertakes no obligation to update or revise any
forward-looking statements or forward-looking information contained
in this press release to reflect subsequent information, events or
circumstances or otherwise.
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SOURCE Granite Real Estate Investment Trust