TORONTO, ONTARIO--(Marketwire - June 4, 2012) - C2C Industrial Properties Inc. (the "Company" or "C2C") (TSX VENTURE:CCH) today announced that it had entered into an agreement to acquire a portfolio of seven industrial properties aggregating approximately 793,000 square feet of gross leaseable area ("GLA") on 44.2 acres of land well-located in Montreal Quebec, Mississauga Ontario and Edmonton Alberta. The properties are 98% leased to a high quality, well diversified group of more than 70 tenants with only one tenant representing more than 4% of gross revenue. The properties have functional clear ceiling heights and all are located in prime industrial nodes close to key transportation routes, airports and rail hubs. The Portfolio is being acquired at a weighted average going-in capitalization rate of approximately 6.4% before deductions for deferred capital repairs. The transaction is conditional, and subject to satisfaction of the conditions, is scheduled to close in July of 2012.
The total purchase price, including acquisition costs, will be approximately $70.5 million, which is to be satisfied by the assumption of an existing $10.0 million mortgage maturing June 1, 2014 with an effective interest rate of 3.25%, a new 24-month $34.8 million mortgage with an effective interest rate of 5.00%, and a new 18-month $21.5 million second mortgage with an effective interest rate of 9.25%. The balance is to be paid in cash.
With the completion of this acquisition, the Company's portfolio will consist of 21 industrial properties aggregating approximately 2 million square feet of gross leasable area well-situated in urban growth markets across Canada.
"This key strategic acquisition significantly expands the size, scale and scope of our industrial property portfolio. It initiates our presence in two additional, well-established and major industrial markets: Quebec and Alberta. It strengthens our presence in Ontario and further diversifies our revenue streams," commented Chris Ross, President. "In addition, many of the buildings are clustered close together providing enhanced leasing, tenant retention and operating cost synergies both within the portfolio to be acquired, and with our current properties. These multi-tenant properties will serve as a platform for our value-add investment activities. C2C will now have direct access to four of the largest industrial markets in Canada."
"Going forward, we will continue to expand our industrial property portfolio in key growth markets across the country through additional acquisitions," Mr. Ross concluded.
About C2C Industrial Properties Inc.
C2C is a real estate investment corporation specializing in the acquisition, ownership and operation of industrial properties across Canada. C2C currently owns fourteen industrial assets totalling approximately 1.2 million square feet. More information about C2C (TSX VENTURE:CCH) is available at www.sedar.com.
Forward Looking Statements
This document contains forward-looking statements relating to C2C and the environment in which it operates and its strategy, action plans and investments, which may involve estimates, forecasts and projections. These statements are not guarantees of future performance and involve risks and uncertainties that are difficult to predict and/or are beyond C2C's control. A number of important factors could cause actual outcomes and results to differ materially from those expressed in these forward-looking statements. These factors include those set forth in this press release and other public filings. Consequently, readers should not place any undue reliance on such forward-looking statements. These forward-looking statements are made as of the date of this press release. C2C is under no obligation to update any forward-looking statements contained herein should material facts change due to new information, future events or other factors. All forward-looking statements attributable to C2C are expressly qualified by these cautionary statements.
The TSX Venture Exchange has neither approved nor disapproved the contents of this press release.Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this press release.
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