NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISTRIBUTION IN THE UNITED STATES
Agellan Commercial Real Estate Investment Trust (the “REIT”) (TSX: ACR.UN) announced today that it has entered into an agreement to purchase two multi-tenanted light industrial properties located in Atlanta, Georgia (“Norcross Springs”). Norcross Springs consists of 4 buildings containing approximately 322,000 square feet of gross leasable area, and is currently 90% occupied by 21 tenants. Norcross Springs complements the REIT’s seven other properties in the Atlanta area, and the REIT expects to leverage its current relationships and knowledge of the Atlanta market to enhance the cash flow and value of the acquisition.
The aggregate purchase price of approximately US$15.8 million (before closing costs) represents a going-in capitalization rate of approximately 7.25%. The REIT expects to finance the acquisition in part with proceeds from the recently completed public unit offering, and long term mortgage financing. The REIT has negotiated a long term mortgage representing approximately 60% of the purchase price, with a fixed rate of 3.70% per annum.
The transaction is expected to close on or about September 8, 2016. Closing of the transaction is subject to certain closing conditions typical for a transaction of this type. There can be no assurance that all conditions to closing will be satisfied or waived.
About Agellan Commercial Real Estate Investment Trust
The REIT is an unincorporated, open-ended real estate investment trust established pursuant to a declaration of trust under the laws of the Province of Ontario. The REIT has been created for the purpose of acquiring and owning industrial, office and retail properties in select target markets in the United States and Canada.
The REIT’s current portfolio aggregates approximately 4.7 million square feet of gross leasable area in 31 properties. The properties are primarily located in major urban markets in the United States and Canada.
This press release contains forward-looking information within the meaning of applicable securities legislation, which reflects the REIT’s current expectations regarding future events. Forward-looking information is based on a number of assumptions and is subject to a number of risks and uncertainties, many of which are beyond the REIT’s control that could cause actual results and events to differ materially from those that are disclosed in or implied by such forward-looking information. These forward-looking statements are made as of the date of this press release and, except as expressly required by applicable law, the REIT assumes no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events or otherwise.
Agellan Commercial Real Estate Investment Trust
Frank Camenzuli, 416-593-6800 x226