May 31, 2011 (Canada NewsWire Group) --
TSX Venture Exchange - AAR.UN
VANCOUVER, May 31, 2011 /CNW/ - Pure Industrial Real Estate Trust ("PIRET" or the "REIT") (TSXV: AAR.UN) today announced that it has entered into an agreement to acquire a fully leased single tenant income producing industrial property on a sale leaseback transaction for a purchase price of $3,104,000.
The property is located at 20-30 Milburn Road, Stoney Creek, Ontario, has a total rentable area of 62,098 sq.ft., and is situated on 2.61 acres. The property is 100% leased to a single tenant, Kromet International Inc. who designs and manufactures custom metal components and assemblies. The fully net lease extends until 2021, with contractual rent increases. The purchase price of $3.104 million represents a favorable going-in cap rate ("Capitalization Rate") of 8.50%.
The acquisition is anticipated to close prior to July 24, 2011. The purchase price will be satisfied with cash on hand and proceeds from new mortgages financing of $2,017,600, with an anticipated interest rate of 4.5% per annum.
PIRET's units are listed on the TSX Venture Exchange under the symbol AAR.UN. For more information on PIRET, visit our website at www.piret.ca.
About Pure Industrial Real Estate Trust (PIRET)
PIRET is an unincorporated, open-ended investment trust established for the purposes of acquiring, owning and operating a diversified portfolio of income-producing industrial properties in primary industrial markets across Canada. PIRET focuses exclusively on investing in industrial properties and is the only publicly traded vehicle in Canada that offers investors exclusive exposure to Canada's industrial asset class.
Additional information about PIRET is available at www.piret.ca or www.sedar.com.
THE TSX VENTURE EXCHANGE HAS NOT REVIEWED AND DOES NOT ACCEPT RESPONSIBILITY FOR THE ADEQUACY OR THE ACCURACY OF THIS RELEASE.
Director of Investor Relations
Pure Industrial Real Estate Trust (PIRET)
Suite 910, 925 West Georgia Street
Vancouver, BC V6C 3L2
Phone: (604) 681-5959 or (888) 681-5959