Homburg REIT Canada makes Office Acquisitions



Homburg Canada Real Estate Investment Trust announced that it has entered into a binding agreement to acquire two properties in the province of Quebec: a two-storey office building in Longueuil and a four-storey office building in Levis. The gross purchase price of $17 million, excluding closing and transaction costs, represents a weighted average going-in capitalization rate of approximately 8%. The two transactions will add about 1.5%, or 113,259 square feet, of new assets to the REIT's portfolio. The transactions are expected to close by the end of June 2011 and are subject to standard closing conditions.

2405 Fernand-Lafontaine Boulevard, Longueuil, Quebec

The property at 2405 Fernand-Lafontaine Boulevard is a suburban office building in Longueuil, Quebec. The building will be acquired for a purchase price of $4.8 million, which will be satisfied through the assumption of a $2.4 million, 6.64% mortgage maturing in May 2017 and a cash payment of approximately $2.4 million.

Situated on 1.97 acres of land in Montreal's second-largest suburb, the property is a recently built "Class B+" office building with 32,881 square feet of gross leasable area and 122 parking stalls. It is located in the Vieux-Longueuil Industrial Park, across from the municipal golf course Le Parcours du Cerf, which is surrounded by recently built, high-end suburban homes. Easily accessible by highways 10, 15, 20, 116, 132 and 134, the property is 100% occupied by two quality tenants, GENIVAR and I.T.R. Acoustics. The average lease maturity for the total building is at 5.3 years.

6777 de la Rive-Sud Boulevard, Levis, Quebec

The property at 6777 de la Rive-Sud Boulevard is a suburban office building in Levis, Quebec. The building will be acquired for a purchase price of $12.2 million, which will be satisfied through the assumption of a $6.5 million, 6.3% mortgage maturing in September 2015 and a $1.5 million, 4.1% mortgage maturing in January 2012, as well as a cash payment of approximately $4.2 million.

Situated on 6.4 acres of land, the property is a recently built "Class A" office building with 80,378 square feet of gross leasable area and 461 parking stalls. It is located in Levis, a major urban centre and economic hub in the Quebec City region, in an area known as "La Cité Desjardins de Lévis," home to the head office of the Fédération des caisses Desjardins du Québec. The property is close to the Galeries Chagnon and the recently developed Misceo Levis City Centre, and enjoys easy access to highways 20, 73 and 132. It is entirely occupied by divisions of the Desjardins Group. The average lease maturity of the property is at 6.2 years.

"We are pleased with these acquisitions, which provide excellent return and further diversify the portfolio in the office segment. Both properties are located near existing assets and can therefore efficiently be absorbed into our operations," said Jim Beckerleg, President and Chief Executive Officer.


 

on June 13, 2011