TORONTO--(BUSINESS WIRE)--Agellan Commercial Real Estate Investment Trust (the “REIT”) (TSX: ACR.UN) announced today that it has entered into an agreement to purchase a multi-tenant property (the “Property”) located at 1800 Sandy Planes Industrial Parkway in Atlanta, Georgia. The Property consists of 3 buildings containing approximately 167,000 square feet of gross leasable area, and is currently 98% occupied by 18 tenants. In addition, the Property contains approximately 4 acres of vacant land which provides an attractive potential future development opportunity for the REIT. The aggregate purchase price of approximately US$11.0 million before closing costs represents a going-in capitalization rate of approximately 8.13%.
The REIT intends to satisfy the purchase price for the Property with certain of the net proceeds that it previously received in connection with the disposition of 8271 Anderson Court in Odenton, Maryland. In addition, a mortgage that was previously secured by 8271 Anderson Court in Odenton, Maryland is now expected to be secured by the Property. The transaction is expected to close on or about July 8, 2015 and is subject to certain conditions typical for transactions of this type. There can be no assurance that all conditions to closing will be satisfied or waived.
“The REIT is excited to be able to recycle assets and redeploy the capital, on a tax efficient basis, from the disposition of 8271 Anderson Court in Odenton, Maryland into this higher yielding investment with upside potential,” said Frank Camenzuli, the Chief Executive Officer of the REIT.
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 current portfolio aggregates approximately 4.5 million square feet of gross leasable area in 31 properties. The properties are primarily located in major urban markets in the United States and Canada.
This press release contains forward-looking information within the meaning of applicable securities legislation, which reflects the REIT’s current expectations regarding future events. Forward-looking information is based on a number of assumptions and is subject to a number of risks and uncertainties, many of which are beyond the REIT’s control that could cause actual results and events to differ materially from those that are disclosed in or implied by such forward-looking information. These forward-looking statements are made as of the date of this press release and, except as expressly required by applicable law, the REIT assumes no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events or otherwise.