VICTORIA, BRITISH COLUMBIA--(Marketwired - May 13, 2013) - Partners Real Estate Investment Trust (the "REIT" or "Partners REIT") (TSX:PAR.UN) announced today that it has completed the previously-announced acquisitions of a newly-constructed, necessity-based, open-air retail centre and a stabilized retail centre in the Greater Montreal region totaling approximately 169,932 square feet of gross leasable area.
Marcel-Laurin is a newly-constructed, 120,566 square foot open-air retail centre, anchored by a Metro grocery store and a Brunet Pharmacy with no scheduled lease rollover until 2020. Marcel-Laurin has a prominent location in the primary retail node and access roads in Saint Laurent, Quebec, a suburb of Montreal.
The Repentigny Shopping Centre is a 49,366 square foot open-air stabilized retail centre, anchored by a Familiprix, Dollarama, and Banque Nationale du Canada. The centre is well-located on Boulevard Iberville in Repentigny, Quebec, a suburb of Montreal.
The REIT paid approximately $45.9 million for the properties, satisfied by new mortgages of approximately $27.6 million with a weighted average interest rate of 3.75%, with the balance in cash. The properties are expected to generate annualized Net Operating Income of approximately $3.0 million and annualized Funds from Operations of $2.0 million.
"The acquisition of the Marcel-Laurin and Repentigny properties continues to reflect the strategy of Partners REIT of acquiring high-quality, necessity-based and stable properties which are accretive and which provide unit holders with long-term and defensible cash flow," commented Edward Boomer, Chief Investment Officer of the REIT.
About Partners REIT
Partners REIT is a growth-oriented real estate investment trust, which currently owns (directly or indirectly) 38 retail properties, well-located in British Columbia, Alberta, Manitoba, Ontario and Quebec, aggregating approximately 2.7 million square feet of leasable space. Partners REIT focuses on expanding and managing a portfolio of retail and mixed-use community and neighbourhood shopping centres located in both primary and secondary markets across Canada.
Certain statements included in this press release constitute forward-looking statements, including, but not limited to, those identified by the expressions "expect," "will" and similar expressions to the extent they relate to Partners REIT. The forward-looking statements are not historical facts but reflect Partners REIT's current expectations regarding future results or events. These forward looking statements are subject to a number of risks and uncertainties that could cause actual results or events to differ materially from current expectations, including access to capital, regulatory approvals, intended acquisitions and general economic and industry conditions. Although Partners REIT believes that the assumptions inherent in the forward-looking statements are reasonable, forward-looking statements are not guarantees of future performance and, accordingly, readers are cautioned not to place undue reliance on such statements due to the inherent uncertainty therein.
Net operating income ("NOI") and funds from operations ("FFO") are non-IFRS measures often used by Canadian real estate investment trusts as measures of operating performance. NOI and FFO are presented herein because management believes these non-IFRS measures are relevant measures of the operating performance of the REIT.