Ravelin Properties REIT Announces Acquisition of 25% Co-Ownership Interest in Commerce West and Gateway Centre Properties in the Greater Toronto Area and Loan Forbearance on 120 South LaSalle Property in Chicago

Executive Summary

• Ravelin Properties REIT completed the acquisition of the remaining 25% co-ownership interest in its two co-owned Greater Toronto Area (GTA) properties, Commerce West and Gateway Centre, bringing its total GTA portfolio ownership to 100%.
• The REIT entered into a forbearance agreement with CIBC Inc. regarding the defaulted US$84 million loan for the 120 South LaSalle office property in Chicago, extending the deadline for resolution to September 30, 2025.
• The CIBC loan had matured on August 31, 2025, and the REIT had previously disclosed the loan as in default due to covenant breaches since Q1 2024; negotiations for a mutually acceptable restructuring are ongoing.

Key Details

• GTA Acquisition:
  • Acquired remaining 25% interest in Commerce West and Gateway Centre properties.
  • Combined gross leasable area of the acquired properties: 659,713 square feet.
  • Post-acquisition, Ravelin REIT owns 100% of its GTA portfolio, which now consists of six properties totaling 1,636,265 square feet.
  • Strategic benefit: Enables full control over decision-making, budgeting, leasing, and capital investment plans.
• 120 South LaSalle Loan (Chicago):
  • Total principal debt outstanding: US$84 million.
  • Original maturity date: August 31, 2025.
  • Status: In default due to covenant breaches (disclosed since Q1 2024).
  • CIBC issued a notice of default and reservation of rights.
  • Forbearance Agreement: CIBC agreed to a forbearance period expiring on September 30, 2025.
  • This aligns with an existing forbearance period held with G2S2 Capital Inc.
  • REIT remains in active discussions to resolve the default and achieve a loan restructuring.

Notable Quotes

• "The GTA transaction to acquire the remaining 25% co-owner interest in our Commerce West and Gateway Centre properties is strategic for the REIT. It enables us to fully control the decision making, budgeting, leasing, and capital investment plans for these properties. Leasing activity continues to gain momentum in the GTA and therefore the timing of this acquisition is favourable from the REIT's perspective," said Shant Poladian, Chief Executive Officer of the REIT.