World News: 00:51 GMT Friday 12th October 2018. [Dream Industrial REIT via Globe Newswire via SPi World News]
TORONTO, Oct. 11, 2018 (GLOBE NEWSWIRE) -- today announced the acquisition of two properties located in Columbus, Ohio (“the Acquisition” or “the Acquired Properties”) and an unconditional purchase and sale agreement to acquire a property located in the Greater Montreal Area (the “GMA Property”).
The Acquisition provides a foothold into the Columbus industrial market, and is expected to provide strong and stable cash flows. The Acquired Properties comprise approximately 721,000 square feet of gross leasable area (“GLA”) and are 100% leased to five tenants, all under triple net leases with annual contractual rent increases. The Acquired Properties have a weighted average lease term of 6.3 years. The Acquisition closed on September 6, 2018 and the total purchase price was approximately US$61.0 million ($78.1 million), representing a going in capitalization rate of approximately 6.6%. The purchase price and related transaction costs were funded with proceeds from the Trust’s June equity offering and its revolving credit facility. The Trust is in negotiations to obtain new long-term mortgage financing on the Acquisition.
The Trust has also entered an unconditional purchase and sale agreement to acquire a 121,000 square foot Class A distribution facility located in the Greater Montreal Area. The GMA property is located in Saint-Laurent, Quebec, a key industrial sub-market with excellent access to the city’s primary transportation arteries (including the Trans-Canada Highway, Highway 13 and Highway 40), the Pierre-Elliot Trudeau International Airport and is situated across the highway from a future Light Rail Train Station.
The asset is 100% leased to one of the country’s largest distributors of outdoor equipment and serves as both its headquarters and main distribution facility. Excess land provides potential for expansion of approximately 31,000 square feet to accommodate future growth for new tenants or the existing tenant. The property will be acquired for a purchase price of $13.6 million, representing a going in capitalization rate of approximately 6.1%. Closing is expected to be funded by working capital and the Trust’s revolving credit facility, is subject to customary closing conditions and is expected at the end of October.
Dream Industrial REIT is an unincorporated, open-ended real estate investment trust. Dream Industrial REIT owns and operates a portfolio of 222 geographically diversified light industrial properties comprising approximately 20.1 million square feet of gross leasable area located primarily in key markets across Canada with a growing presence in the United States. Its objective is to build upon and grow its portfolio and to provide stable and sustainable cash distributions to its unitholders. For more information, please visit .
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Globe Newswire: 00:51 GMT Friday 12th October 2018
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