TORONTO, ONTARIO--(Marketwired - May 10, 2017) - Partners Real Estate Investment Trust ("Partners" or the "REIT") (TSX:PAR.UN) is pleased to announce that it has finalized a $13.0 million mortgage at the REIT's Cornwall Square property in Cornwall, Ontario.
This mortgage was financed by First National Financial LP and the loan has a three-year term, a 25 year amortization period and an interest rate of prime plus 2.25%, with an interest rate floor of 4.95%. Partners has devoted the full proceeds of the mortgage towards repayment of the property's existing $16.7 million mortgage, which carried an interest rate of prime plus 2.30%. The difference between the two mortgages was funded by the REIT's cash on hand.
In association with this new mortgage, Partners will pay a loan origination fee of $97,500 to First National Financial (TSX:FN)(TSX:FN.PR.A). Moray Tawse, a significant unitholder of the REIT, has an interest in First National Financial.
About Partners REIT
Partners REIT is a growth-oriented real estate investment trust focused on the expansion and management of a portfolio of 35 retail and mixed-use community and neighbourhood shopping centres. These properties are located in both primary and secondary markets across British Columbia, Alberta, Manitoba, Ontario, and Quebec, and comprise a total of approximately 2.5 million square feet of leasable space.
Certain statements included in this press release constitute forward-looking statements, including, but not limited to, those identified by the expressions "expect," "will" and similar expressions to the extent they relate to Partners REIT. The forward-looking statements are not historical facts but reflect Partners REIT's current expectations regarding future results or events. These forward looking statements are subject to a number of risks and uncertainties that could cause actual results or events to differ materially from current expectations, including access to capital, regulatory approvals, intended acquisitions and general economic and industry conditions. Although Partners REIT believes that the assumptions inherent in the forward-looking statements are reasonable, forward-looking statements are not guarantees of future performance and, accordingly, readers are cautioned not to place undue reliance on such statements due to the inherent uncertainty therein.
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Chief Executive Officer
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