MONTREAL, Sept. 27, 2022 /CNW Telbec/ – PRO Real Estate Investment Trust (“PROREIT” or the “REIT”) (TSX: PRV.UN) announced today that it has completed the sale of a portfolio of nine non-core retail properties totalling approximately 94,000 square feet of gross leasable area (“GLA”), located in Western Canada, for gross proceeds of $18.75 million, excluding closing costs. Proceeds of the sale will be used to repay approximately $14.1 million in related mortgages maturing in January 2023, and the balance will be used to partially repay a term loan.
“We are pleased to complete the previously disclosed sale of nine non-core retail properties located in Western Canada, as we pursue our strategy to focus our portfolio on high quality real estate primarily in the industrial sector. This disposition also moves us closer to our goal of reducing our Debt to Gross Book Value ratio to below 50%,” said James W. Beckerleg, President and Chief Executive Officer of PROREIT.
Properties included in the portfolio sale:
- 735 Main Street, Moose Jaw, SK
- 475 Albert Street, Regina, SK
- 4923 â 50th Street, Athabasca, AB
- 330 â 45th Street, Edson, AB
- 10015 â 107th Street, Westlock, AB
- 223 Main Street NW, Slave Lake, AB
- 418 Yellowhead Highway, Burns Lake, BC
- 8925 Granville Street, Port Hardy, BC
- 610 Newman Road, Quesnel, BC
The REIT is also currently negotiating four other separate non-core retail property disposition transactions that would provide approximately $10 million in gross proceeds, excluding transaction costs. If completed, proceeds from the sale of these additional properties are expected to be used for debt repayment and general corporate purposes.
This press release contains forward-looking statements and forward-looking information (collectively, “forward-looking statements”) within the meaning of applicable securities legislation, including statements relating to certain expectations, growth plans and other information related to REIT’s business strategy and future plans. Forward-looking statements are based on a number of assumptions and are subject to a number of risks and uncertainties, many of which are beyond PROREIT’s control, that could cause actual results and events to differ materially from those that are disclosed in or implied by such forward-looking statements.
Forward-looking statements contained in this press release include, without limitation, statements pertaining to the reduction of the Debt to Gross Book Value ratio of the REIT and the potential disposition of up to $10 million of additional non-core retail properties, including the expected use of the sale proceeds. PROREIT’s objectives and forward-looking statements are based on certain assumptions, including that (i) PROREIT will receive financing on favourable terms; (ii) the future level of indebtedness of PROREIT and its future growth potential will remain consistent with the REIT’s current expectations; (iii) there will be no changes to tax laws adversely affecting PROREIT’s financing capacity or operations; (iv) the impact of the current economic climate and the current global financial conditions on PROREIT’s operations, including its financing capacity and asset value, will remain consistent with PROREIT’s current expectations; (v) the performance of PROREIT’s investments in Canada will proceed on a basis consistent with PROREIT’s current expectations; and (vi) capital markets will provide PROREIT with readily available access to equity and/or debt. Without limitation, there can be no assurance that any discussions or agreements the REIT may have concerning potential dispositions will result in definitive agreements or completed dispositions, and if they do, what the terms or timing of any such dispositions would be.
The forward-looking statements contained in this news release are expressly qualified in their entirety by this cautionary statement. All forward-looking statements in this press release are made as of the date of this press release. PROREIT does not undertake to update any such forward-looking information whether as a result of new information, future events or otherwise, except as required by law.
Additional information about these assumptions and risks and uncertainties is contained under “Risk Factors” in PROREIT’s latest annual information form and “Risk and Uncertainties” in PROREIT’s management’s discussion and analysis for the three months ended June 30, 2022, which are available under PROREIT’s profile on SEDAR at www.sedar.com.
PROREIT (TSX: PRV.UN) is an unincorporated open-ended real estate investment trust established pursuant to a declaration of trust under the laws of the Province of Ontario. Founded in 2013, PROREIT owns a portfolio of high-quality commercial real estate properties in Canada, with a strong industrial focus in robust secondary markets.
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