MONTREAL, QUEBEC--(Marketwired - Aug 12, 2014) - (TSX VENTURE:NEL.UN) - Nobel Real Estate Investment Trust ("Nobel REIT" or the "REIT") is pleased to announce that it has acquired a commercial property comprising 35,785 square feet of gross leasable area, located on a 217,298 square feet site area at 41 boulevard Saint-Jean-Baptiste in the city of Chateauguay, Quebec, for a purchase price of $6,300,000, excluding acquisition costs. The occupancy of the property is 100% and the current lease of Société en Commandite 220 Immobilière, the single-tenant, and RONA Inc, its subtenant, expires in October 2020.
This acquisition was financed by a loan in the amount of $4,600,000, secured by a first ranking hypothec on the acquired property, with the balance of the purchase price satisfied with part of the net proceeds of the REIT's recent private placement completed on July 10, 2014. The secured loan bears interest at a fixed rate of 3.68% for a five-year term. As for the previous acquisition announced on July 18, the mortgage loan was provided by MCAP Financial Corporation. The effective capitalization rate of the acquisition is 6.95%.
About Nobel REIT
Nobel REIT is an unincorporated open-ended real estate investment trust governed by the laws of the Province of Québec. Nobel REIT has been created for the purpose of acquiring and owning income producing properties. The REIT will focus on acquiring commercial retail, mixed-used retail, and industrial and suburban office properties in the primary and secondary markets in the Province of Québec. Nobel REIT currently owns four properties located in Québec, comprising 168,318 square feet of gross leasable area.
Disclaimer - Safe Harbour Forward-Looking Statements
Forward-looking statements contained in this press release involve known and unknown risks, uncertainties and other factors that may cause actual results, performance and achievements of Nobel REIT to be materially different from any future results, performance or achievements expressed or implied by the said forward-looking statements.
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