Pro acquires Winnipeg industrial property for $5.4M

Mr. Gordon Lawlor reports PROREIT ANNOUNCES ACQUISITION OF INDUSTRIAL PROPERTY IN WINNIPEG FOR $5.4 MILLION Pro Real Estate Investment Trust has acquired a 100-per-cent interest in a high-quality industrial property in Winnipeg, Man., totalling 24,665 square feet of gross leasable area (GLA), for a total purchase price of $5.4-million (excluding closing costs) from Parkit Enterprise Inc., representing approximately $217 per square foot and a mid-6-per-cent capitalization rate. "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. Approximately $2.1-million of the purchase price was satisfied through the issuance of 345,161 Pro REIT trust units at $6.20 per unit to Parkit. Single-tenant light industrial property The property, located at 555 Camiel Sys St. in Winnipeg's St. Boniface Industrial Park, is a single-tenant cross-dock facility with excellent access to major transportation routes. It comprises 24,665 square feet of GLA. It is fully occupied by a national logistics tenant under a long-term lease that provides annual rent escalations and a renewal option. With this acquisition, Pro REIT's Winnipeg small- and mid-bay portfolio expands to 23 properties, including one parcel of development land, totalling approximately 1.3 million square feet of GLA. Financing of the transaction The $5.4-million purchase price (excluding closing costs) was satisfied with cash from a $3.5-million expansion of a previously announced $63-million three-year secured non-revolving credit facility, which includes two successive one-year renewal options, at a five-year fixed swap rate of 4.55 per cent, along with the issuance of approximately $2.1-million of trust units to Parkit. About Pro Real Estate Investment Trust Founded in 2013, Pro is an unincorporated open-ended real estate investment trust focused on owning and operating a portfolio of high-quality light industrial properties in Canada. With a presence in robust primary and secondary markets, Pro REIT is committed to delivering stable cash flows, disciplined growth and long-term value creation for its unitholders. We seek Safe Harbor.