MONTREAL, Feb. 28, 2020 (GLOBE NEWSWIRE) -- (TSX-V: FRO.UN) Fronsac Real Estate Investment Trust (“Fronsac REIT” or “Fronsac”) is pleased to announce the closing of two previously announced acquisitions. The first property acquired is in Farnham, Québec. It is composed of a Petro-Canada gas station, a Beau-Soir convenience store and a Tim Hortons restaurant. Total consideration paid was $4.0 million (excluding transaction costs) and was settled in cash. The second property acquired is in Kenora, Ontario. It is composed of a retail store operated under the Walmart banner. Total consideration paid for the property was $12.0 million (excluding transaction costs) and was settled in cash.
These two acquisitions are part of the three previously announced acquisitions by Fronsac on January 20, 2020 (see: “Fronsac Announces Public Offering of Units and Agreements to Acquire Three Properties in Québec and Ontario”). The third acquisition is a 75%-interest in a property located in Saint-Étienne-des-Grès, Québec, composed of a Parkland gas station, a Beau-Soir convenience store and a Tim Hortons restaurant. This acquisition is set to close in mid-March 2020 for total consideration of approximately $3.0 million (excluding transaction costs).
The combined net operating income in respect of the three properties is approximately $1.5 million, representing a 7.9% weighted average capitalization rate based on the aggregate purchase price of approximately $19.0 million (excluding transaction costs).
About Fronsac - Fronsac Real Estate Investment Trust is an open-ended trust that acquires and owns high quality triple net and management-free commercial real estate properties.
Forward-Looking Statements - This press release contains forward-looking statements and information as defined by applicable securities laws. Fronsac warns the reader that actual events may differ materially from current expectations due to known and unknown risks, uncertainties and other factors that could cause actual results to differ materially from the results anticipated in such statements. Among these include the risks related to economic conditions, the risks associated with the local real estate market, the dependence to the financial condition of tenants, the uncertainties related to real estate activities, the changes in interest rates, the availability of financing in the form of debt or equity, the effects related to the adoption of new standards, as well as other risks and factors described from time to time in the documents filed by Fronsac with securities regulators, including the management report. Fronsac does not intend or undertake to update or modify its forward-looking statements even if future events occur or for any other reason, unless required by law or any regulatory authority.
Neither the TSX Venture Exchange Inc. nor its Regulation Services Provider (as that term is defined in the Policy of the TSX Venture Exchange) accepts any responsibility for the adequacy or accuracy of this release.
For further information please contact Jason Parravano at (450) 536-5328.