WINNIPEG, MB, July 16, 2021 /CNW/ - Artis Real Estate
Investment Trust ("Artis" or the "REIT") (TSX: AX.UN) announced
today the closing of 26 of the 28 properties included in the
previously announced Greater Toronto
Area ("GTA") industrial portfolio sale. The sale of the 26
assets generated gross proceeds of $696.7
million. The remaining two properties are expected to close
in the third quarter of 2021 and generate gross proceeds of
$53.3 million.
The total sale price for the portfolio of $750.0 million represents a price per square foot
of $297. After adjusting for one
outstanding mortgage of approximately $15.2
million and anticipated closing costs, the transaction will
generate total net proceeds of approximately $734 million, exceeding the REIT's most recently
reported International Financial Reporting Standards fair value of
$550.7 million by 36.2%.
"We're pleased to unlock value for our owners with the closing
of this milestone transaction," said Samir
Manji, President and Chief Executive Officer of Artis. "This
sale will allow us to meaningfully reduce debt and will provide us
with the financial flexibility to pursue our return of capital and
value investing strategies."
The transaction was the result of an internally managed, formal
and extensive sale process.
Artis is a diversified Canadian real estate investment trust
with a portfolio of industrial, office and retail properties in
Canada and the United States. Artis' vision is to build a
best-in-class asset management and investment platform focused on
growing net asset value per unit and distributions for investors
through debt repayment, return of capital and value investing in
real estate.
Cautionary Statements
This press release contains forward-looking statements. For this
purpose, any statements contained herein that are not statements of
historical fact may be deemed to be forward-looking statements.
Without limiting the foregoing, the words "expects", "anticipates",
"intends", "estimates", "projects", "seeks", and similar
expressions or variations of such words and phrases or state that
certain actions, events or results ''may'', ''would'' or ''will''
occur or be achieved are intended to identify forward-looking
statements. Particularly, statements regarding Artis' return of
capital and value investing strategies, building Artis into a
best-in-class asset management and investment platform focused on
value investing in real estate, the REIT's ability to execute its
strategy, the REIT's ability to unlock value and anticipated
proceeds of the transaction are forward-looking statements.
Forward-looking statements are based on a number of factors and
assumptions which have been used to develop such statements, but
which may prove to be incorrect. Artis cannot assure investors that
actual results will be consistent with any forward-looking
statements and Artis assumes no obligation to update or revise such
forward-looking statements to reflect actual events or new
circumstances. All forward-looking statements contained in this
press release are qualified by this cautionary statement.
SOURCE Artis Real Estate Investment Trust