Granite REIT Announces Property Acquisition in the United States

Granite Real Estate Investment Trust (Granite) announced that it has agreed to the purchase of a 600,000 square foot logistics-distribution facility in West Chester (Cincinnati), Ohio at a purchase price of U.S. $21.0 million. The property is being purchased from Fifth & Pacific Companies, Inc. (Fifth & Pacific) who will continue to occupy the premises and will enter into a lease for an initial term of 10 years.  The tenant, Fifth & Pacific, designs and markets a portfolio of retail based, premium, global lifestyle brands including Juicy Couture, Kate Spade and Lucky Brand. 
 
The 42 acre site is well located in an established business park 20 minutes north of downtown Cincinnati. The property was initially developed in 2001 as a build-to-suit logistics facility for the tenant and was constructed to institutional grade specifications including 38'6" clear heights, ESFR sprinkler system and T-5 lighting. The site includes 11 acres of expansion/development land.
 
The investment represents an in-going yield of approximately 8.0% and will be funded with Granite's line of credit and cash on hand. The transaction is scheduled to close on or about August 20, 2013, subject to customary closing conditions.

on July 30, 2013