VICTORIA, BRITISH COLUMBIA--(Marketwire - Oct. 3, 2012) - Partners Real Estate Investment Trust (the "REIT") (TSX:PAR.UN) announced today that it had agreed to acquire two well-located retail centres situated in close proximity on Nun's Island in Montreal, Quebec. The Centre Village Shopping Centre is a 95,000 square foot retail property anchored by a Loblaws grocery store and a newly-expanded SAQ liquor store, as well as a Royal Bank and a new Starbucks coffee shop. Centre Village is 97% leased. Elgar Place, located nearby, is an 80% occupied 10,000 square foot retail centre anchored by a Couche-Tard convenience store.
The REIT will pay approximately $21.9 million for the two properties, utilizing the REIT's recently announced new and expanded credit facility, with interest at 3.60%. This new revolving facility was expanded to include an additional chartered bank related to this latest acquisition. The two centres are estimated to generate current in-place annualized Net Operating Income of approximately $1.4 million and $0.6 million in annualized Funds from Operations. The transaction is expected to close on or before October 31, 2012.
"These acquisitions fit perfectly with our goal to build a portfolio of solid retail assets with consistent and defensible cash flow generating strong yields," commented Patrick Miniutti, President of the REIT. "There is very limited retail space on Nun's Island despite the growing local high net worth population, and no additional land is available for further retail development. These two properties are very attractive to necessity-based retailers and service providers, and we expect to see solid, stable and growing returns from our investment in the years ahead."
About Partners REIT
Partners REIT is a growth-oriented real estate investment trust, which currently owns (directly or indirectly) thirty retail properties, well-located in British Columbia, Alberta, Manitoba, Ontario and Quebec, aggregating approximately 2.2 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.