Watch Live

Tweet TWEET

Agellan Commmerial REIT announces $18.25 million property acquisition

Agellan Commmerial REIT announces $18.25 million property acquisition 
/NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION 
IN THE UNITED STATES/ 
TORONTO, May 8, 2013 /CNW/ - Agellan Commercial REIT (TSX: ACR.UN) ("Agellan" 
or the "REIT") announced today that it has entered into an agreement to 
purchase an office property (the "Property") located in Texas for a total 
purchase price of $18.25 million (the "Purchase Price"), representing a 
going-in capitalization rate of 8.16%. The Property is a two-storey commercial 
office facility located in the fast growing Techway and Energy Corridor in 
Houston, Texas. The Property has approximately 101,000 square feet of gross 
leasable area. The multi-tenant building is 100% occupied by three tenants and 
was constructed in 2003 and is part of a larger corporate office park which 
has attracted many investment grade tenants. The lead tenant, National Oilwell 
Varco, is S&P rated A and occupies approximately 75% of the Property until 
2020. 
Highlights of the acquisition include: 


    --  The REIT is executing its growth plan by acquiring a
        well-located, high-quality property in a major U.S. market
        which is experiencing significant growth.
    --  The Property was acquired at an attractive relative valuation,
        and is located next to several of the REITs current assets in a
        strategically clustered portfolio providing economies of scale
        in key Houston submarkets.
    --  The REIT is acquiring the Property at an attractive
        capitalization rate of 8.16%.
    --  The REIT has negotiated an interest only 5-year term mortgage
        of approximately $10 million that will be fixed at an interest
        rate of less than 3.0%.
    --  The balance of the Purchase Price will be completed through a
        combination of cash on hand and drawing on the REIT's
        acquisition line.
    --  The property is 100% leased and has an attractive lease
        maturity profile of approximately 6.5 years at contractual
        rates determined to be under market.
    --  Approximately 83% of the Property NOI is derived from
        investment grade tenants.
    --  The acquisition is expected to be approximately 3% accretive to
        the REITs Forecasted Adjusted Funds From Operations ("AFFO")
        per unit.

Frank Camenzuli, Agellan's Chief Executive Officer, commented, "We are excited 
because the acquisition is consistent with our previously stated growth 
strategy of acquiring high-quality assets located in strategic clusters in 
growing markets at attractive relative valuations. The REIT continues to see 
similar investment opportunities in the targeted U.S. markets."

About Agellan Commercial Real Estate Investment Trust

Agellan Commercial 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 4.2 million square feet 
of gross leasable area in 23 properties. The properties are primarily located 
in Texas, Ontario and the U.S. Midwest.

Additional information about Agellan is available at 
www.agellancommercialreit.com or www.sedar.com.

Derek Dermott, President Agellan Commercial Real Estate Investment Trust Tel: 
(416) 593-6800 x269 Fax: (416) 593-6700

Frank Camenzuli, CEO Agellan Commercial Real Estate Investment Trust Tel: 
(416) 593-6800 x226 Fax: (416) 593-6700

SOURCE: Agellan Commercial Real Estate Investment Trust

To view this news release in HTML formatting, please use the following URL: 
http://www.newswire.ca/en/releases/archive/May2013/08/c4875.html

CO: Agellan Commercial Real Estate Investment Trust
ST: Ontario
NI: REL FIN MNA 

-0- May/08/2013 18:28 GMT


 
Press spacebar to pause and continue. Press esc to stop.