TORONTO, ONTARIO--(Marketwire - July 19, 2012) - C2C Industrial Properties Inc. (the "Company" or "C2C") (TSX VENTURE:CCH) today announced that it has completed the previously announced acquisition of a portfolio of seven light industrial properties. The portfolio comprises approximately 793,000 square feet of gross leasable area ("GLA") situated on 44.2 acres of land located in Montreal Quebec, Mississauga Ontario and Edmonton Alberta. The properties are 98% leased to a well diversified group of 70 tenants with only one tenant representing more than 4% of gross revenue. The properties are clustered in key strategic markets, which benefit from close proximity to key transportation routes, airports and rail hubs.
With the completion of this acquisition, the Company's portfolio now consists of 21 light industrial properties aggregating approximately 2.0 million square feet of GLA in urban growth markets across Canada.
The acquisition is accretive to AFFO per share and affords the Company the ability to maintain a conservative AFFO pay-out ratio of approximately 30%, relative to industry peers.
"We continue to expand and diversify our business across Canada, building on our strong presence in key markets, enhancing our ability to generate economies of scale, operating synergies to grow our cash flows and net asset value. The addition of these properties gives C2C a market position in four major Canadian cities demonstrating further execution of the Company's business strategy," commented David Wright, CEO.
In conjunction with the acquisition and as previously announced on June 26, 2012, the Company intends to complete a brokered private placement of common shares for gross proceeds of approximately $22,000,000. Certain interested parties of the Company will purchase common shares under the private placement. The participation of these parties in the offering constitutes a related party transaction under Canadian Multilateral Instrument 61-101 ("MI 61-101"), but is otherwise exempt from the formal valuation and minority approval requirements of MI 61-101.
About C2C Industrial Properties Inc.
C2C is a real property investment company, which completed its Qualifying Transaction on the TSX Venture Exchange in May 2011. C2C's principal objective is to be a real estate investment corporation specializing in acquisition, ownership and the operation of industrial properties across Canada. More information about C2C (TSX VENTURE:CCH) is available at www.sedar.com.
Forward Looking Statements
This document contains forward-looking statements relating to C2C and the environment in which it operates and its strategy, action plans and investments, which may involve estimates, forecasts and projections. These statements are not guarantees of future performance and involve risks and uncertainties that are difficult to predict and/or are beyond C2C's control. A number of important factors could cause actual outcomes and results to differ materially from those expressed in these forward-looking statements. These factors include those set forth in this press release and other public filings. Consequently, readers should not place any undue reliance on such forward-looking statements. These forward-looking statements are made as of the date of this press release. C2C is under no obligation to update any forward-looking statements contained herein should material facts change due to new information, future events or other factors. All forward-looking statements attributable to C2C are expressly qualified by these cautionary statements.
The TSX Venture Exchange has neither approved nor disapproved the contents of this press release.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this press release.