TORONTO--(BUSINESS WIRE)--Agellan Commercial Real Estate Investment Trust (the “REIT”) (TSX: ACR.UN) announced today that a third-party purchaser has agreed to purchase the REIT’s approximately 118,500 square foot, five-story multi-tenant office building located at 10130 Perimeter Parkway in Charlotte, North Carolina (the “Property”).
The sale price for this non-core asset of the REIT is approximately US$22.65 million (before closing costs) and represents an in-place capitalization rate of approximately 7.46%. The proceeds of the disposition are expected to be redeployed by the REIT for future acquisitions of industrial properties located in the United States.
“The REIT remains focused on redeploying funds into quality industrial properties in the United States, and we maintain our belief that we can redeploy these funds quickly into accretive acquisitions,” said Frank Camenzuli, the Chief Executive Officer of the REIT.
The disposition is consistent with the REIT’s strategy of recycling capital by selling office assets that are no longer aligned with its core strategies in order to fund new industrial investment opportunities.
The sale is expected to close in July 2018 and is subject to certain conditions typical for transactions of this type (other than a due diligence condition which has been waived by the purchaser). There can be no assurance that all conditions to closing will be satisfied or waived.
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 was 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 45 properties contain 6.5 million square feet of gross leasable area, with the REIT’s ownership interest at 6.1 million square feet. The properties are located in major urban markets in the United States and Canada. Following the sale of the Property, the REIT’s 44 properties will contain 6.3 million square feet of gross leasable area, with the REIT’s ownership interest at 6.0 million square feet.
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.