True North Commercial Real Estate Investment Trust Furthers Its Urban Growth Strategy with Acquisition in Victoria, British Columbia
52,000 square meters, 100% occupied, 84% rented by the state
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TORONTO, September 13, 2021 / CNW / – True North Commercial Real Estate Investment Trust (TSX: TNT.UN) (the “REIT”) is pleased to announce that it has acquired an office property located at 1112 Fort Street, Victoria, British Columbia (the “Victoria Property”). With the acquisition of Victoria Property, the REIT is continuing its expansion strategy into urban locations and will also further expand its existing presence in the city center Victoria.
“The REIT continues to improve the stability of its cash flow by strategically reallocating the proceeds from its recent sale into an off-market acquisition consisting primarily of government tenants.” called Leslie Veiner, the Chief Executive Officer of the REIT. “This acquisition reflects the REIT’s strategy of acquiring real estate in urban locations with a high concentration of state-owned tenants with good credit ratings. It also builds on our existing presence in the stable.” Victoria Office market that is driven by one of the most compelling supply and demand bases in. benefits Canada. “
The purchase price of the Victoria Property is approx. $ 22.0 million, excluding closing costs. The acquisition is expected to be achieved through a combination of: (i) an initial mortgage financing on the Victoria property for approx $ 14.3 million; and (ii) proceeds from the REIT’s recent sale of the 5900 Explorer Drive, Mississauga. The closure is expected to take place in the middle October 2021.
The Victoria property is a 6-storey office building with a lettable area of approx. 52,000 square meters with 11 parking spaces on the surface and 32 parking spaces in the underground car park. The Victoria Property is within walking distance of the city center Victoria; is near two major arteries (Patricia Bay Highway and Trans-Canada Highway); and provides access to public transport. With a weighted average remaining lease term of 4.9 years, the building is 100% rented, 84% of which by the province British Columbia.
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About the REIT
The REIT is an unregistered, open real estate investment trust that operates under the laws of the province Ontario. The REIT currently owns and operates a portfolio of 45 properties approximately 4.7 million square feet in urban and select strategic secondary markets across the country Canada. The REIT is focused on growing its portfolio primarily through acquisitions across the country Canada and other jurisdictions where opportunities exist.
Further information on the REIT can be found at www.sedar.com or on the REIT’s website at www.truenorthreit.com.
Certain statements in this press release constitute forward-looking information within the meaning of Canadian securities laws. Forward-looking statements are provided to assist the reader in understanding the financial performance, financial condition and cash flows of the REIT on and for periods ending on certain dates and to provide information about Present management’s current expectations and plans for the future, including the successful completion of the Victoria Property acquisition and the REIT’s financial performance resulting from the Victoria Property acquisition, and readers are cautioned against such statements may not be suitable for any other purpose. Forward-looking information may relate to future results, performance, accomplishments, events, prospects or opportunities for the REIT or the real estate industry, prospects and expected events or results and may include statements about the acquisition of the Victoria property as well as its financial condition, business strategy, budget, anticipated Costs, investments, financial results, funding rates and costs, taxes, plans and goals of the REIT. In some cases, forward-looking information may be identified by terms such as “may,” “could,” “will,” “could,” “should,” “would,” “occur,” “expect,” “plan.” , “anticipate”, “believe”, “intend”, “seek”, “aim”, “estimate”, “aim”, “aim”, “project”, “forecast”, “forecast”, “potential”, ” continue “,” likely “,” plan “or their negation or other similar expressions relating to matters that are not historical facts.
Forward-looking statements necessarily involve known and unknown risks and uncertainties, which may be general or specific, and which create the possibility that expectations, forecasts, predictions, projections or conclusions may prove to be incorrect, assumptions are incorrect, and objectives, strategic objectives and priorities may prove to be incorrect may not be reached. A variety of factors, many of which are beyond the control of the REIT, will affect the operations, performance, and results of the REIT and its business and could cause actual results, including those relating to the acquisition of the Victoria Property , expectations of estimated or expected events or results differ materially from current expectations. These factors include, but are not limited to, risks related to the REIT’s trust units (“Units”) and risks related to the REIT’s annual information form for the past year December 31, 2020, annual management discussion and analysis under “Risks and Uncertainties” and the risks discussed in the REIT materials filed from time to time with the Canadian Securities and Exchange Commission at www.sedar.com. Readers are cautioned to carefully consider these and other factors, uncertainties and potential events and not to place undue reliance on forward-looking statements, as there can be no guarantee that actual results will match such forward-looking statements.
The information contained in forward-looking statements is based on certain material assumptions that were used in drawing conclusions or projections or projections, including management’s perceptions of historical trends, current conditions and expected future developments, as well as the financial performance of the REIT resulting from the Acquisition of the Victoria Property and other considerations as deemed appropriate in the circumstances, including the following: the ability of the REIT to complete the acquisition of the Victoria Property and secure acceptable mortgage financing; the extent of the impact of the Coronavirus (SARS-CoV-2) (“COVID-19”) on the business, operations and performance of the REIT, including the performance of its entities; (b) the ability of the REIT to mitigate any impact related to COVID-19; Inflation will remain relatively low; Interest rates remain stable; conditions in the real estate market, including competition for acquisitions, will be in line with the current climate; The Canadian capital markets will continue to provide the REIT with access to equity and / or debt at reasonable interest rates as required Starlight Group Property Holdings Inc current asset management agreement; and the risks identified or mentioned above, taken together, will not have a material impact on the REIT. While management believes these assumptions are reasonable based on the information currently available, they may prove to be incorrect.
The forward-looking statements in this press release are dated and relate only to events or information as of the date of this press release. Unless expressly required by applicable law, the REIT assumes no obligation to update or publicly revise any forward-looking statements after the date on which the statements are made, whether as a result of new information, future events or the occurrence of unexpected events for any other reason .
SOURCE True North Commercial Real Estate Investment Trust
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