TORONTO, Jan. 22, 2018 (GLOBE NEWSWIRE) -- 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 Centre Le Village Property in Montréal (Nun’s Island), Québec.
The mortgage is with Otéra Capital Inc and it has a three-year term, a 25-year amortization period and an interest rate of 3.76%. Partners will devote $7.8 million of the mortgage towards repayment of the property's existing mortgage, which carried an interest rate of 3.26%. The remaining net proceeds of $5.2 million, prior to financing costs will be utilized for debt reduction purposes. As part of repaying the maturing mortgage, the REIT’s Credit Facility borrowing limit has been reduced from $10.0 million to $5.0 million.
In association with this new mortgage, Partners will pay a broker fee of $45,500 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.
Partners also confirms the completion of the final redemption of all outstanding Series III 5.5% Convertible Unsecured Subordinated Debentures due March 31, 2018 (TSX: PAR.DB.B) (“Series III Debentures”) which was initially announced on December 18, 2017. After this redemption all convertible unsecured subordinated debentures have been repaid.
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:
Partners REIT Investor Relations
1 (844) 474-9620 ext. 401
Jane Domenico Chief Executive Officer
(416) 855-3313 ext. 501