Melcor REIT Announces Acquisition of Coast Home Centre

 Acquisition Highlights

  • Retail centre located in Edmonton, Alberta with total gross leasable area of 59,725 sq. ft. on 4.21 acres
  • Well-maintained buildings with 100% occupancy and future re-development potential
  • Strategically located on the 170thStreet traffic corridor in a strong sub-market
  • Positioned to benefit from new development and re-development in the area
Melcor REIT announced that it has completed the acquisition of Coast Home Centre in Edmonton, Alberta for $12.3 million (excluding closing costs).
Darin Rayburn, Chief Executive Officer of Melcor REIT, commented on the acquisition: "We are pleased to add Coast Home Centre to our portfolio. This acquisition fits well with our strategy of growing in the markets that we know best in order to leverage existing market knowledge. Coast is a quality asset in a prime, high traffic location."
Management expects that the acquisition will be accretive to AFFO by $0.02 per unit on an annualized basis. The acquisition was funded through the REIT's line of credit and available cash. Following the acquisition the REIT's Debt to Gross Book Value ratio remains at 47%.
Rayburn continued: "We continue to look at potential acquisitions that fit our acquisition strategy."

on September 12, 2013