MONTREAL, Dec. 18, 2019 /CNW Telbec/ - PRO Real Estate
Investment Trust ("PROREIT" or the "REIT") (TSX: PRV.UN) is pleased
to announce that it has closed the acquisition of a
100% interest in a light industrial property in the Burnside
Industrial Park, in Halifax, Nova
Scotia. Built in 2014, the building was acquired for
$8.45 million before closing costs,
representing a going-in capitalization rate of 6.50%.
The property located at 171 John Savage Ave. has a warehouse
clear height of 28 feet and adds approximately 50,000 square feet
of gross leasable area to the REIT's portfolio. It is 100% occupied
by two regional tenants with a weighted average lease term of
approximately eight years. Both leases include annual rent steps
over their respective terms.
"As we continue to strategically diversify our portfolio, this
acquisition provides PROREIT with a stronger presence in the
strengthening Halifax industrial
market that has received increased interest from institutional
investors recently," said Jim
Beckerleg, President and CEO, PROREIT.
The $8.45 million purchase price
was financed by the proceeds from a new $5.75 million 10-year first mortgage at a rate of
3.43%. The balance of the purchase price of $2.7 million was satisfied through a draw on
available operating facilities that were previously paid down in a
recent equity financing.
About PROREIT
PROREIT (www.proreit.com) is an unincorporated open-ended real
estate investment trust owning a diversified portfolio of 92
commercial properties across Canada representing over 4.4 million square
feet of GLA. Established in March
2013, PROREIT is mainly focused on strong primary and
secondary markets in Québec, Atlantic
Canada and Ontario, with
selective exposure in Western
Canada.
SOURCE PROREIT