Agellan Commercial Real Estate Investment Trust Announces Completion of the Disposition of a Portion of Parkway Place
TORONTO--(BUSINESS WIRE)--Agellan Commercial Real Estate Investment Trust (the “REIT”) (TSX:ACR.UN) announced today the closing of its previously announced disposition of a portion of the REIT’s Consumers Road office complex in Toronto, Ontario (“Parkway Place”).
“We are excited about the completion of this transaction and the value created for the REIT’s unitholders. This disposition further advances the REIT’s strategic initiatives and we expect further value to be created in the near-term from our Parkway Place assets.”
The transaction involved the disposition of the REIT’s partnership interest in 165 Yorkland LP, a limited partnership established by the REIT to own a car dealership and corporate head office at Parkway Place pursuant to a lease agreement with Porsche Cars Canada Ltd. The REIT disposed of its partnership interest for approximately $42.2 million before transaction costs, working capital adjustments and holdbacks. Certain proceeds from the disposition were used to repay the REIT’s construction facility in respect of the project and the remaining proceeds will be used by the REIT to complete the development of a retail and parking facility servicing Parkway Place.
This transaction is another significant step forward in the REIT’s strategy of value creation at Parkway Place. Additionally, the REIT expects the new covered parking facility and retail amenities to have a meaningful positive impact on the office component at Parkway Place going forward.
On the retail leasing front, positive leasing momentum continues as the REIT currently has leases in place and binding offers covering approximately 21,000 square feet of the approximate 42,000 square feet being constructed. The REIT is in leasing discussions with several other prospective retail tenants regarding the remaining available space.
“The REIT remains focused on executing its overall business strategy,” said Frank Camenzuli, the REIT’s Chief Executive Officer. “We are excited about the completion of this transaction and the value created for the REIT’s unitholders. This disposition further advances the REIT’s strategic initiatives and we expect further value to be created in the near-term from our Parkway Place assets.”
This news release contains forward-looking information within the meaning of applicable securities legislation. Forward-looking information can be identified by words or expressions including, but not limited to, “plans”, “expects”, “scheduled”, “estimates”, “intends”, “anticipates”, “predicts”, ”projects”, “believes”, or variations of such words and phrases or statements to the effect that certain actions, events or results “may”, “will”, “could”, “would”, “should”, “might”, “occur”, “be achieved” or “continue” or similar expressions. Forward-looking information is necessarily based on a number of estimates and assumptions that are inherently subject to significant business, economic and competitive risks, uncertainties and contingencies, many of which are beyond the REIT’s control, which could cause actual results to differ materially from those that are disclosed in or implied by such forward-looking information. As such, management can give no assurance that actual results will be consistent with the forward-looking information. While such assumptions are considered reasonable by management of the REIT based on the information currently available, any of these assumptions could prove to be inaccurate and, as a result, the forward-looking information based on those assumptions could be incorrect. These risks and uncertainties include, but are not limited to: the REIT’s future growth potential; results of operations; future prospects for additional investment opportunities in Canada and the U.S., including access to debt and equity capital at acceptable costs, the ability to obtain necessary approvals and to minimize any unexpected costs or liabilities, environmental or otherwise, relating to any acquisitions or dispositions; demographic and industry trends remaining unchanged, including occupancy levels, lease renewals, the exercise of any early termination rights, rental increases and retailer competition; future levels of the REIT’s indebtedness remaining at acceptable levels, including its credit rating; tax laws as currently in effect remaining unchanged, including applicable specified investment flow-through rules; and current economic conditions remaining unchanged, including interest rates and applicable foreign exchange rates. Readers, therefore, should not place undue reliance on any such forward-looking statements, as forward-looking information involves significant risks and uncertainties and should not be read as guarantees of future performance or results, and will not necessarily be accurate indications of whether or not the times at or by which such performance or results will be achieved. All forward-looking information in this news release speaks only as of the date of this news release. The REIT does not undertake to update any such forward-looking information whether as a result of new information, future events or otherwise, except as required by applicable securities laws. All forward-looking statements in this news release are qualified by these cautionary statements. Additional information about these assumptions and risks and uncertainties is contained in the REIT’s filings with securities regulators, including its current annual information form and MD&A.
About Agellan Commercial Real Estate Investment Trust
The REIT is an unincorporated, open-ended real estate investment trust established pursuant to a declaration of trust under the laws of the Province of Ontario. The REIT has been created for the purpose of acquiring and owning industrial, office and retail properties in select target markets in the United States and Canada.
The REIT’s 44 properties contain approximately 7.0 million square feet of gross leasable area, with the REIT’s ownership interest at approximately 6.7 million square feet. The properties are located in major urban markets in the United States and Canada.