PROREIT will act as sole property manager for the portfolio
As part of the joint venture transaction, PROREIT and Crestpoint will each acquire a 50% interest in 21 primarily industrial properties currently owned by a third party, for a total purchase price of
In conjunction with such acquisition, PROREIT will sell a 50% interest in 21 of its currently owned properties to Crestpoint, having a total value of
"This joint venture is a unique opportunity for PROREIT to increase its footprint in
"We are pleased to manage and operate this highly desirable portfolio. Given
"Crestpoint is excited to take a significant presence in the
The combined transaction, which will be immediately accretive to earnings, will result in PROREIT and Crestpoint to each have a 50% ownership interest in the 42-property portfolio. PROREIT, through its wholly-owned property management business
PROREIT's acquisition of the 50% interest in the 21 properties, totaling 1.6 million square feet, for a cost to PROREIT of approximately
PROREIT's sale of a 50% interest in 21 of its currently owned properties, totaling 1.5 million square feet, will result in considerations of approximately
The balance of the proceeds to PROREIT, net of the acquisition payment, will be used to reduce the REIT's credit facility. The transaction is expected to close in the coming weeks and is subject to customary closing conditions.
The 21 acquisition properties are located in
The 42 asset portfolio totals 3,059,635 square feet of GLA with efficient bay sizes and ample loading doors, and is comprised of warehouse, light industrial, and flex office spaces. The properties are approximately 95% leased to a diverse mix of tenants with a weighted average lease term of three years. Many of the in-place leases benefit from the inclusion of contracted rent step escalations and/or are at below current market rents, presenting substantial future rental upside upon turnover.
PROREIT (TSX: PRV.UN) is an unincorporated open-ended real estate investment trust established pursuant to a declaration of trust under the laws of the Province of
This press release contains forward looking statements and forward-looking information (collectively, "forward-looking statements") within the meaning of applicable securities legislation, including statements relating to certain expectations, projections, growth plans and other information related to REIT's business strategy and future plans. Forward-looking statements are based on a number of assumptions and are subject to a number of risks and uncertainties, many of which are beyond PROREIT's control, that could cause actual results and events to differ materially from those that are disclosed in or implied by such forward-looking statements.
Forward-looking statements contained in this press release include, without limitation, statements pertaining to the creation of the joint venture, the acquisition with Crestpoint of 21 primarily industrial properties, the sale to Crestpoint of a 50% interest in 21 of PROREIT's currently owned properties, the anticipated terms, financing and closing date of such transactions, and the expected performance of the portfolio and its future impact on PROREIT's results. PROREIT's objectives and forward-looking statements are based on certain assumptions, including that (i) PROREIT will receive financing on favourable terms; (ii) the future level of indebtedness of PROREIT and its future growth potential will remain consistent with the REIT's current expectations; (iii) there will be no changes to tax laws adversely affecting PROREIT's financing capacity or operations; (iv) the impact of the current economic climate and the current global financial conditions on PROREIT's operations, including its financing capacity and asset value, will remain consistent with PROREIT's current expectations; (v) the performance of PROREIT's investments in
The forward-looking statements contained in this news release are expressly qualified in their entirety by this cautionary statement. All forward-looking statements in this press release are made as of the date of this press release. PROREIT does not undertake to update any such forward-looking information whether as a result of new information, future events or otherwise, except as required by law.
Additional information about these assumptions and risks and uncertainties is contained under "Risk Factors" in PROREIT's latest annual information form and "Risk and Uncertainties" in PROREIT's management's discussion and analysis for the year ended
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1 Colliers Q1 2022 Halifax Industrial Report |
SOURCE PROREIT
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