TORONTO, July 30, 2018 /PRNewswire/ - Granite Real
Estate Investment Trust ("Granite") (TSX: GRT.UN / NYSE: GRP.U)
announced today that subsidiaries of Magna International Inc.
("Magna") have exercised their rights of first refusal in response
to a third party offer to acquire Granite's two remaining special
purpose properties in the United
States for a total purchase price of approximately
US$207 million (the "Transactions").
The properties are located in Piedmont,
South Carolina and Clinton,
Tennessee and together represent approximately 1.6 million
square feet and generate net operating income of approximately
US$14.2 million, which represents an
implied capitalization rate of 6.9%. Completion of the
Transactions is subject to customary closing conditions and is
expected to occur later in the third quarter of 2018.
Michael Forsayeth, Granite's CEO,
commented that "The sale to Magna of these special purpose
properties is another significant strategic step forward for
Granite. The Transactions will further reduce Granite's exposure to
Magna and the special purpose properties which are key strategic
objectives for Granite. Pro forma the Transactions will reduce
Granite's Magna concentration to 49% based on gross leasable
area."
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 the expected timing of closing of the
Transactions, the impact of the Transactions on Granite's
concentration of Magna-tenanted properties; and 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" 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 the closing of the
Transactions on the terms and conditions described herein, the
expected impact of the Transactions as described herein, or other
events, performance or results and will not necessarily be accurate
indications of whether or the times at or by which such closing of
the Transactions, impact of the Transactions, or other events or
performance 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