Pure Industrial Real Estate Trust (“PIRET” or the “REIT”) (TSXV: AAR.UN) today announced the successful closing of two single tenant, income-producing industrial properties that was previously announced on September 30, 2010 for a combined total purchase price of $11,417,724
The first acquisition, 2385 Matheson Boulevard, in Mississauga, Ontario, is tenanted by a division of the Service Master Company, which has entered into a new five (5) year net care-free lease with PIRET. Incorporated in 1947, ServiceMaster is a Fortune 500 company that provides a diversified set of services to residential and commercial customers. ServiceMaster has more than 5,100 company-owned and franchise locations and employs 32,000 people.
A new first mortgage equal to 65% of the purchase price with an expected interest rate of 3.70%, and maturing in 2015, will be funded after closing. The asset is being acquired at a favorable going-in cap rate of 7.9%.
The second acquisition, 650 Finley Avenue in Ajax, Ontario, is tenanted by a division of MartinRea International has entered into a new 5.6 year net care-free lease with PIRET. MartinRea is a publicly traded company trading on the Toronto Stock Exchange (TSX) under the trading symbol “MRE”, and employs approximately 7,000 people at 31 divisions in Canada, the United States, Mexico and Europe.
A new first mortgage equal to 65% of the purchase price with an anticipated interest rate of 3.70%, and maturing in 2015, will be funded after closing. The asset is being acquired at a favorable going-in cap rate of 7.5%.
PIRET funded the acquisition with equity from the bought deal financing announced September 30, 2010. As previously announced, PIRET has completed more than $111 million in acquisitions since January 2010.
PIRET’s units are listed on the TSX Venture Exchange under the symbol AAR.UN. For more information on PIRET, visit our website at www.piret.ca.
About Pure Industrial Real Estate Trust (PIRET)
PIRET is an unincorporated, open-ended investment trust established for the purposes of acquiring, owning and operating a diversified portfolio of income-producing industrial properties in primary markets across Canada. PIRET focuses exclusively on investing in industrial properties and is the only publicly traded vehicle in Canada that offers investors exclusive exposure to Canada’s industrial asset class.
Additional information about PIRET is available at www.piret.ca or www.sedar.com.
THE TSX VENTURE EXCHANGE HAS NOT REVIEWED AND DOES NOT ACCEPT RESPONSIBILITY FOR THE ADEQUACY OR THE ACCURACY OF THIS RELEASE.
Filed under: Real Estate