TORONTO--(BUSINESS WIRE)--Agellan Commercial Real Estate Investment Trust (the “REIT”) (TSX: ACR.UN) announced today it has entered into a lease with Aldi Inc. (“Aldi”) at the REIT’s Naperville, Illinois office property (the “Naperville Property”) for approximately 113,000 square feet at current market rental rates. Aldi is expected to occupy approximately 80% of the approximately 141,000 square feet of space that the REIT previously announced would be surrendered by Health Care Service Corporation (“HCSC”). Aldi’s lease will commence on January 1, 2019 and will have a term of ten years.
Additionally, the REIT has entered into a lease amendment agreement with HCSC whereby HCSC will extend its current lease in respect of approximately 25,000 square feet of space at the Naperville Property which HCSC previously advised would be surrendered. The term of this amended lease will be coterminous with the lease for the remainder of the space leased to HCSC at the Naperville Property, which leases will expire in November 2025. In addition, HCSC will expand its presence at the Naperville Property by leasing approximately 32,000 square feet of additional space at lease rates that are consistent with those contained in the previously described lease amendment agreement between the REIT and HCSC. The term of this expansion will also be coterminous with the rest of HCSC’s leased area.
The REIT has also entered into a binding agreement with Vulcan Construction Materials which will extend approximately 13,000 square feet of its existing leased space at the Naperville Property for an additional term of 5 years.
“These leasing achievements have helped to secure the cash flow at the REIT’s largest property, which now boasts a committed occupancy of 95%,” said Frank Camenzuli, Chief Executive Officer of the REIT. “These leases are the result of the hard work of our asset management, leasing and property management teams who continue to perform at a high level.”
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 44 properties contain 6.3 million square feet of gross leasable area, with the REIT’s ownership interest at 6.0 million square feet. The properties are 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 in this news release includes certain of the REIT’s expected lease terms and tenants at the Naperville Property. 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.