MONTRÉAL, March 16, 2020 /CNW/ - PRO Real Estate Investment Trust ("PROREIT" or the "REIT") (PRV-UN.TO) is pleased to announce the closing of its acquisition of a 100% interest in a 135,494 square-foot light industrial property in Moncton, New Brunswick . The temperature-controlled building was acquired for $8.36 million before closing costs, representing a going-in capitalization rate of 6.80%.
Built in 1979 and expanded in 2000, the building is located adjacent to the Trans-Canada Highway at 123 Price Street in Moncton . With a warehouse clear height of 18 to 50 feet, the building is 100% occupied by a national logistics company with a long-term lease that includes annual rent steps up until December 2032. The property includes an additional 6 acres of land that could be used for building expansion or other opportunities.
"With the addition of this light industrial building, strategically located in the gateway city of Moncton , we are further strengthening our portfolio and increasing our exposure to the strong industrial sector," said Jim Beckerleg , President and CEO, PROREIT.
The $8.36 million purchase price was financed by the proceeds from a new $5.75 million 7-year first mortgage at a historically-low rate of 2.64%. The balance of the purchase price of $2.6 million was satisfied through a draw on available operating facilities that were previously paid down in a recent equity financing.
PROREIT (www.proreit.com) is an unincorporated open-ended real estate investment trust owning a diversified portfolio of 93 commercial properties across Canada representing over 4.5 million square feet of GLA. Established in March 2013 , PROREIT is mainly focused on strong primary and secondary markets in Québec, Atlantic Canada and Ontario , with selective exposure in Western Canada .
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