PROREIT enters into a binding agreement to acquire an office property in Pointe-Claire

PRO Real Estate Investment Trust announced its first acquisition since completing the acquisition of the four properties that were acquired further to the public offering of PROREIT, which closed on November 26, 2013.
PROREIT has entered into a binding agreement to acquire an office property located at 325 Hymus Boulevard in Pointe-Claire, Québec for $3.38 million (excluding closing and transaction costs), of which approximately $1.01 million will be satisfied through the issuance of Class B limited partnership units of PRO REIT Limited Partnership, a subsidiary of the REIT, at a price per unit of $2.40. The balance of the purchase price will be satisfied through the use of PROREIT's revolving credit facility which will be expanded to a maximum availability of $9 million from its original $6.9 million with the inclusion of this property as additional security. The closing of the acquisition is expected to be completed by mid-December and is subject to standard closing conditions. The purchase price represents a going-in capitalization rate of approximately 8.25% on in place cash flows and will be immediately accretive to the REIT.
The property is a newly renovated office building with 23,994 square feet of gross leasable area and potential expansion of 15,000 square feet. The property was built in 1977 and renovated in 2011. The building is 71.8% occupied by Centre De Réadaptation Lisette Dupras under a long-term lease until August 2021. It has easy access to a major roadway (highway 40) and is in close proximity to the Lakeshore General Hospital. The property is situated on approximately 2.0 acres of land and has 23 outdoor parking spaces.
Following the closing of the acquisition, PROREIT's portfolio will be comprised of nine commercial properties totalling 396,872 square feet of gross leasable area. The portfolio of the REIT is diversified by property type and geography across Eastern Canada, including the Greater Montréal Area and certain urban centres of Atlantic Canada.

on December 12, 2013