Partners REIT to Acquire Five New Montreal Retail Properties

Partners Real Estate Investment Trust  announced that it had entered into agreements with separate vendors to acquire four newly-constructed, necessity-based, open-air retail centres and one stabilized retail centre in the Greater Montreal region totaling approximately 286,500 square feet of gross leasable area.

The Properties have an overall economic occupancy of 93.3% with nearly 50% of the floor space and income generated by national and regional tenants on long-term leases. The tenant roster of the Properties includes three grocery stores, two drug stores, two SAQ stores and three Tim Hortons stores, all on long-term leases. The REIT will pay approximately $78.5 million for the five properties, satisfied by $48.4 million in new mortgages incurring a weighted average interest rate of approximately 3.7%, with the balance in cash from the REIT's recently completed bought deal equity offering and its credit facility.

The five properties are estimated to generate annualized Net Operating Income of approximately $4.85 million and $2.70 million in annualized Funds from Operations. These transactions are expected to close in the month of February, 2013. "These combined transactions mark one of our larger aggregate acquisitions to date with the properties providing extremely strong tenancies and stable long-term cash flow. These acquisitions also and significantly strengthens our presence in the vibrant Greater Montreal Region," commented Patrick Miniutti, President.

"Importantly, these properties consists predominantly of brand-new retail formats that will attract both tenants and consumers to the properties." "Looking ahead, we believe we will enhance cash flows at these new properties as we complete the leasing on the newly-completed properties and capture all available operating synergies and economies of scale from our growing Quebec portfolio."

on January 18, 2013