CALGARY, Nov. 4, 2015 /CNW/ – Edgefront Real Estate Investment Trust (the “REIT”) (TSXV: ED.UN) is pleased to announce that it has waived diligence conditions to acquire an industrial property located in Prince George, British Columbia and entered into a conditional agreement to acquire another industrial property located in Prince Albert, Saskatchewan. The aggregate purchase price for the two properties of approximately $12.1 million is to be satisfied by the issuance to the vendors of approximately $5.3 million of units at an issue price of $1.90 per unit (which represents a premium to the current market price of the REIT as traded on the TSX Venture Exchange) and $6.8 million in cash to be funded from available cash and proceeds of new mortgage financings on the properties.
“We are pleased to continue to execute on our accretive growth plan with another two acquisitions that will be partially financed by way of vendor unit take backs. At the completion of these two deals, we will have raised approximately $20 million of equity without the need to rely on raising money in the public capital markets. This has been an active year for Edgefront and we look forward to executing on additional deals in the future.” stated Kelly Hanczyk, the REIT’s Chief Executive Officer.
Both acquisitions remain subject to customary closing conditions, including TSXV and other necessary approvals. The Prince Albert acquisition is also subject to completion of due diligence to the satisfaction of the REIT.
The following table provides additional information for each of the two property acquisitions:
|
Property Location |
Property Use |
Purchase Price |
Equity Vendor Takeback |
Rentable Area (GLA) |
Occupancy |
Lease Term |
|
Prince George, BC |
Industrial |
$7.5 million |
$3.225 million / 1,697,369 LP units |
53,180 |
100% |
8 years |
|
Prince Albert, SK |
Industrial |
$4.6 million |
$2.07 million / 1,089,473 units |
24,600 |
100% |
10 years |
About the REIT
Edgefront REIT is a growth oriented real estate investment trust focused on increasing unitholder value through the acquisition, ownership and management of industrial properties located in primary and secondary markets in North America. The REIT currently owns a portfolio of 17 properties comprising approximately 952,000 square feet of rentable area.
The REIT has approximately 33,143,708 units issued and outstanding. Additionally, there are 3,830,985 Class B LP units of subsidiary limited partnerships of the REIT issued and outstanding.
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 Edgefront Real Estate Investment Trust
