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 completed its previously announced sale of a 45,000 square foot multi-tenant retail plaza located at 195-215 Rue Bellehumeur in Gatineau, Quebec (the “Property”) to a third party purchaser.
The sale price for this non-core asset of the REIT is approximately C$9.2 million before closing costs and represents an in-place capitalization rate of approximately 7.2%. The proceeds of disposition will be used by the REIT to temporarily reduce the outstanding balance on its credit facility, which is currently partially secured by the Property.
“The disposition further supports the net asset value of the REIT, and will ultimately help advance the composition of the REIT’s portfolio,” said Frank Camenzuli, the Chief Executive Officer of the REIT.
The disposition is consistent with the REIT’s strategy of recycling capital by selling assets in certain markets that are no longer aligned with its core strategies in order to fund new investment opportunities. The REIT intends to focus on multi-tenant properties that provide enhanced diversity. Consistent with the REIT’s past practices and in the normal course of business, the REIT is engaged in discussions, and has various agreements, with respect to possible acquisitions of new properties and dispositions of existing properties in its portfolio. However, there can be no assurance that these discussions or agreements will result in acquisitions or dispositions or, if they do, what the final terms or timing of such acquisitions or dispositions would be. The REIT expects to continue current discussions and actively pursue other acquisition, investment and disposition opportunities.
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 was 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, ext.226
Chief Executive Officer