TORONTO, ONTARIO–(Marketwired – May 4, 2015) –
NOT FOR DISSEMINATION IN THE UNITED STATES OR TO ANY NON-CANADIAN SOURCE
Retrocom Real Estate Investment Trust (the “REIT”) (TSX:RMM.UN) announced today the refinancing of its Southland Mall in Regina, Saskatchewan. As a result of the redevelopment of this shopping centre in 2013, the REIT has secured a new $80 million mortgage loan from The Manufacturers Life Insurance Company. The new mortgage has a term of 10 years maturing on May 1, 2025, bearing interest at a rate of 3.48% per annum and payable in blended monthly instalments of principal and interest based on a 30-year amortization. The new mortgage replaces the maturing mortgage with an outstanding balance of approximately $34 million bearing interest at 5.29%.
As a result of the new financing, the REIT’s weighted average mortgage interest rate is now reduced to 4.62% from 4.83% and the weighted average term of the REIT’s mortgage loans has increased to 6.2 years from 5.3 years.
Net proceeds of $46 million were generated from the refinancing. The funds will be used to redeem the convertible debentures bearing interest at 6.75% per annum, to fully repay the REIT’s revolving line of credit, to fund other development and re-development activities and for general trust purposes.
Richard Michaeloff, President and CEO of the REIT, said, “In late 2013 we completed a major revitalization of the property and re-established Southland Mall as a premier shopping destination. The new mortgage loan, arranged with a top tier lender on very favorable terms, reflects the success of our redevelopment. We continue with our strategy of enhancing value at our properties, including the Golden Mile Shopping Centre, also in Regina.”
About Retrocom REIT
Retrocom REIT is an unincorporated, open-end real estate investment trust which focuses on owning and acquiring retail properties across Canada with the goal of enhancing long-term Unitholder value.
This press release shall not constitute an offer to sell or the solicitation of an offer to buy, which may be made only by means of a prospectus, nor shall there be any sale of the Units in any state, province or other jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under securities laws of any such state, province or other jurisdiction. The Units of the Retrocom REIT have not been, and will not be registered under the U.S. Securities Act of 1933, as amended, and may not be offered, sold or delivered in the United States absent registration or an exemption from the registration requirements of U.S. securities laws.
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