Categorized | Commercial

Pure Industrial Real Estate Trust Closes $15 Million Transaction

Please Share!

Pure Industrial Real Estate Trust Completes $15 Million Deal On Monday, July 18, 2011, Pure Industrial Real Estate Trust reported that the company has completed the purchase of a totally leased and income producing property for a cost of $15.1 million. The unincorporated and open-ended investment trust acquires, owns and operates industrial properties all over Canada. It holds a varied range of industrial properties, in the primary as well as secondary markets in Canada, which generate revenues.

The company had announced on July 4, 2011 that it has agreed to acquire the above said property with a total area of 265,843 sq. ft. on a land that measures 12.77 acres. The property is located at1725, Inkster Boulevard, Winnipeg’s leading industrial park. According to the company, the price represents a capitalization rate of 7.6%. To acquire the property, the real estate investment trust has used the equity from the sale of 12.7 million trust units at C$4.10 per unit to a syndicate of underwriters on a bought deal basis announced in April and C$10.0 million, being the proceeds from 5.05% a year new mortgage financing for a period of ten years.

As Pure Industrial Real Estate Trust closes $15 million transaction, the total purchases of income-producing industrial properties by the company in 2011 add up to 2.0 million sq. ft. The entire property of the new acquisition is leased, with the Winnipeg Regional Health Authority contributing to 25% of the revenue. In 2010, the company completed three private placements on a bought deal basis for C$65.925 million and bought 17 properties for C$130.9 million. At the end of the year, the company had 33 assets with a leasable area of 1.95 million sq. ft. The units of the company, the only vehicle that is publicly traded in Canada that offers exposure to the industrial assets in the country, are traded on the TSX Venture Exchange. The trading symbol of the units is AAR.UN.V.

Please Share!

About Drew Wilson

Drew focuses on the Commercial and Mortgage/Finance categories.

Leave a Reply

Twitter Chat