MONTREAL, Sept. 27,
2022 /CNW Telbec/ - PRO Real Estate Investment Trust
("PROREIT" or the "REIT") (TSX: PRV.UN) announced today that it has
completed the sale of a portfolio of nine non-core retail
properties totalling approximately 94,000 square feet of gross
leasable area ("GLA"), located in Western
Canada, for gross proceeds of $18.75
million, excluding closing costs. Proceeds of the sale will
be used to repay approximately $14.1
million in related mortgages maturing in January 2023, and the balance will be used to
partially repay a term loan.
"We are pleased to complete the previously disclosed sale of
nine non-core retail properties located in Western Canada, as we pursue our strategy to
focus our portfolio on high quality real estate primarily in the
industrial sector. This disposition also moves us closer to our
goal of reducing our Debt to Gross Book Value ratio to below 50%,"
said James W. Beckerleg, President
and Chief Executive Officer of PROREIT.
Properties included in the portfolio sale:
- 735 Main Street, Moose Jaw,
SK
- 475 Albert Street, Regina, SK
- 4923 – 50th Street, Athabasca,
AB
- 330 – 45th Street, Edson,
AB
- 10015 – 107th Street, Westlock,
AB
- 223 Main Street NW, Slave Lake,
AB
- 418 Yellowhead Highway, Burns Lake,
BC
- 8925 Granville Street,
Port Hardy, BC
- 610 Newman Road, Quesnel,
BC
Additional Potential Property
Dispositions
The REIT is also currently negotiating four other separate
non-core retail property disposition transactions that would
provide approximately $10 million in gross proceeds, excluding
transaction costs. If completed, proceeds from the sale of these
additional properties are expected to be used for debt repayment
and general corporate purposes.
Forward-Looking
Statements
This press release contains forward-looking statements and
forward-looking information (collectively, "forward-looking
statements") within the meaning of applicable securities
legislation, including statements relating to certain expectations,
growth plans and other information related to REIT's business
strategy and future plans. Forward-looking statements are based on
a number of assumptions and are subject to a number of risks and
uncertainties, many of which are beyond PROREIT's control, that
could cause actual results and events to differ materially from
those that are disclosed in or implied by such forward-looking
statements.
Forward-looking statements contained in this press release
include, without limitation, statements pertaining to the reduction
of the Debt to Gross Book Value ratio of the REIT and the potential
disposition of up to $10 million of
additional non-core retail properties, including the expected use
of the sale proceeds. PROREIT's objectives and forward-looking
statements are based on certain assumptions, including that (i)
PROREIT will receive financing on favourable terms; (ii) the future
level of indebtedness of PROREIT and its future growth potential
will remain consistent with the REIT's current expectations; (iii)
there will be no changes to tax laws adversely affecting PROREIT's
financing capacity or operations; (iv) the impact of the current
economic climate and the current global financial conditions on
PROREIT's operations, including its financing capacity and asset
value, will remain consistent with PROREIT's current expectations;
(v) the performance of PROREIT's investments in Canada will proceed on a basis consistent with
PROREIT's current expectations; and (vi) capital markets will
provide PROREIT with readily available access to equity and/or
debt. Without limitation, there can be no assurance that any
discussions or agreements the REIT may have concerning potential
dispositions will result in definitive agreements or completed
dispositions, and if they do, what the terms or timing of any such
dispositions would be.
The forward-looking statements contained in this news release
are expressly qualified in their entirety by this cautionary
statement. All forward-looking statements in this press release are
made as of the date of this press release. PROREIT does not
undertake to update any such forward-looking information whether as
a result of new information, future events or otherwise, except as
required by law.
Additional information about these assumptions and risks and
uncertainties is contained under "Risk Factors" in PROREIT's latest
annual information form and "Risk and Uncertainties" in PROREIT's
management's discussion and analysis for the three months ended
June 30, 2022, which are available
under PROREIT's profile on SEDAR at www.sedar.com.
About PROREIT
PROREIT (TSX: PRV.UN) is an unincorporated open-ended real
estate investment trust established pursuant to a declaration of
trust under the laws of the Province of Ontario. Founded in 2013, PROREIT owns a
portfolio of high-quality commercial real estate properties in
Canada, with a strong industrial
focus in robust secondary markets.
SOURCE PROREIT