Pro acquires Winnipeg industrial property for $5.4M

Executive Summary

• Pro REIT has acquired a 100% interest in a high-quality, single-tenant industrial property located in Winnipeg, Manitoba, for a total purchase price of $5.4 million.
• The transaction was funded through a combination of cash from an expanded credit facility and the issuance of trust units to the seller.
• The acquisition expands Pro REIT's Winnipeg portfolio to 23 properties, totaling approximately 1.3 million square feet of gross leasable area (GLA), reinforcing its position as one of the top three industrial landlords in the market.

Key Details

• Transaction Value: Total purchase price of $5.4 million (excluding closing costs).
• Property Details:
  • Location: 555 Camiel Sys St., Winnipeg's St. Boniface Industrial Park.
  • Size: 24,665 square feet of gross leasable area (GLA).
  • Type: Single-tenant light industrial cross-dock facility.
  • Occupancy: Fully occupied by a national logistics tenant under a long-term lease with annual rent escalations and a renewal option.
  • Valuation Metrics: Approximately $217 per square foot and a mid-6% capitalization rate.
• Consideration Structure:
  • Cash Portion: Approximately $3.3 million satisfied via cash from a $3.5 million expansion of a previously announced $63 million three-year secured non-revolving credit facility (includes two successive one-year renewal options, five-year fixed swap rate of 4.55%).
  • Equity Portion: Approximately $2.1 million satisfied through the issuance of 345,161 Pro REIT trust units at $6.20 per unit to the seller, Parkit Enterprise Inc.
• Portfolio Impact: Pro REIT’s Winnipeg small- and mid-bay portfolio now includes 23 properties (including one parcel of development land) totaling approximately 1.3 million square feet of GLA.

Notable Quotes

• "This accretive industrial property acquisition further strengthens our position in the Winnipeg market where we are now among the top-three largest industrial landlords," said Gordon Lawlor, president and chief executive officer of Pro REIT.
• "This transaction also highlights the value of our strategic relationship with Parkit and our shared commitment to creating long-term growth opportunities for our unitholders," added Mr. Lawlor.