MONTREAL, April 15, 2016 /CNW Telbec/ – (TSXV: NEL.UN) Nobel Real Estate Investment Trust (“Nobel REIT” or the “REIT“) is pleased to announce that it has completed the acquisition of 50% of the units of SociÃ©tÃ© en commandite 2045 Stanley (the “2045 Stanley LP“), the limited partnership that owns the office building located at 2039-2047 Stanley in Downtown Montreal, as well as 50% of the shares of 9301-6897 QuÃ©bec Inc., the general partner of 2045 Stanley LP; the other half of the units and shares are owned by Fiducie Notariale ImmobiliÃ¨re (which translates into Notarial Real Estate Trust).
The 2039-2047 Stanley property is a Downtown Montreal office building, comprising 110,398 square feet of gross leasable area, located on a 9,643 square feet land next to the Peel metro station and the access of the Underground City; the current occupancy rate is 97% and the main tenant is Manulife, which occupies almost all of the building and which will leave by December 31, 2016. After Manulife’s departure, the property will be redeveloped and the Chambre des notaires du QuÃ©bec will occupy about 40% of the gross leasable area starting December 2017; Nobel REIT will move its head office there as soon as possible to plan and manage the redevelopment work.
The value of this property is over $25,500,000; the purchase price of the units and shares by Nobel is of approximately $5,000,000, excluding acquisition costs, taking into account existing debts and working capital required for the redevelopment work; the definitive purchase price will be established within 60 days.
This transaction is funded with part of the proceeds from the $6,300,000 temporary loan from an arms’ length party, Timbercreek Mortgage Servicing Inc., which was obtained yesterday by the REIT; this second charge mortgage, of a six-month term, is guaranteed by certain properties of the REIT, along with a pledge of the Class A Nobel REIT Limited Partnership units owned by Nobel Real Estate Investment Trust.
According to Jean Teasdale, President and CEO of Nobel REIT, “The REIT completes today another stage of its growth plan, by setting foot in downtown Montreal. We expect an occupancy rate above 80% for this building by the end of 2018, a rate comparable to other rental properties in the area.”
For its part, Jean Lambert, Trustee of the Fiducie Notariale ImmobiliÃ¨re said “The Fiducie Notariale ImmobiliÃ¨re is pleased to partner with Nobel REIT for the ownership and management of the 2039-2047 Stanley property; the REIT’s experienced management team is a reassuring presence for us.”
About Nobel REIT
Nobel REIT is an unincorporated open-ended real estate investment trust governed by the laws of the Province of QuÃ©bec. Nobel REIT has been created for the purpose of acquiring and owning income producing properties. The REIT focuses on acquiring commercial retail, mixed-used retail, industrial and office properties in the primary markets in the Province of QuÃ©bec and Canada. Nobel REIT currently owns, in whole or in part, sixteen properties located in QuÃ©bec, comprising 763,729 square feet of gross leasable area.
About 2045 Stanley LP
The 2045 Stanley LP is an entity that was created in order to acquire and operate the office building located at 2039-2047 Stanley in Downtown Montreal.
About Fiducie Notariale ImmobiliÃ¨re
Fiducie Notariale ImmobiliÃ¨re was created in order to act as a special partner of 2045 Stanley LP.
About Chambre des notaires du QuÃ©bec
The Chambre des notaires du QuÃ©bec is the professional order of more than 3,900 notaries. Its main mission is to ensure the protection of the public using its members’ services. In this perspective, the Chambre collaborates, through its interventions, so that the values on which is founded the Quebec legal system are conveyed or protected, namely, equality, equity and individual and collective responsibilities.
Disclaimer â Safe Harbour ForwardâLooking Statements
Forward-looking statements contained in this press release involve known and unknown risks, uncertainties and other factors that may cause actual results, performance and achievements of Nobel REIT to be materially different from any future results, performance or achievements expressed or implied by the said forward-looking statements.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
SOURCE Nobel Real Estate Investment Trust