TORONTO, Dec. 18, 2017 (GLOBE NEWSWIRE) -- Partners Real Estate Investment Trust ("Partners" or the "REIT") (TSX:PAR.UN) is pleased to announce that it has finalized a $20.8 million mortgage at the REIT's Mariner Square property in Campbell River, British Columbia and a $11.5 million mortgage at the REIT’s Cobblestone Lane property in Grande Prairie, Alberta.
The Mariner Square mortgage closed December 15th and is for $20.8 million, has a five-year term, a 25-year amortization period and an interest rate of 3.77%. Partners will devote $16.3 million of the mortgage monies towards repayment of the property's existing mortgages, which carried a weighted average interest rate of 5.68%.
The Cobblestone Lane mortgage closed today and is for $11.5 million, has a five-year term, a 25-year amortization period and an interest rate of 3.70%. Partners will apply $9.8 million of the mortgage monies towards repayment of the property's existing mortgages, which carried a weighted average interest rate of 4.77%.
The combined net proceeds of $6.2 million prior to financing costs, will be utilized towards debt repayment.
In association with these new mortgages, Partners will pay a total broker fee of $112,900 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.
Additionally, the REIT is announcing that on January 17, 2018 it will redeem all outstanding Series III 5.5% Convertible Unsecured Subordinated Debentures due March 31, 2018 (TSX:PAR.DB.B) (“Series III Debentures”).
The Series III Debentures will be redeemed upon payment of a redemption amount of $1,016.424658 for each $1,000 principal amount of Series III Debentures, being equal to the aggregate of $1,000, and all accrued and unpaid interest to but excluding the redemption date.
“The REIT’s two-year plan to pay off the three convertible debentures is completed with this announcement. The REIT’s debt effective the January 17, 2018 payment date will consist of mortgage debt and the REIT’s Line of Credit.” Stated Jane Domenico, CEO, “The REIT’s proforma Debt to Gross Book Value on January 17, 2018 stands at 58.6% based on Q3 2017 financials.”
About Partners REIT
Partners REIT is a growth-oriented real estate investment trust focused on the expansion and management of a portfolio of 34 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 2.3 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.
FOR FURTHER INFORMATION, PLEASE CONTACT:
1 (844) 474-9620 ext. 401
Jane Domenico Chief Executive Officer
(416) 855-3313 ext. 401