Agellan Commercial REIT announces the closing of $18.25 million property acquisition

Agellan Commercial REIT announces the closing of $18.25 million property 
acquisition 
/NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION 
IN THE UNITED STATES/ 
TORONTO, June 13, 2013 /CNW/ - Agellan Commercial REIT (TSX: ACR.UN) 
("Agellan" or the "REIT") today announced the successful closing of its 
previously announced transaction of 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, and is 100% occupied 
by three tenants. Constructed in 2003, the building 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. 
The REIT has obtained an interest only 5-year term mortgage of approximately 
$10.1 million at a fixed interest rate of 3.0%. The balance of the Purchase 
Price will be funded through a combination of cash on hand, and the REIT's 
operating line. 
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
        providing economies of scale in key Houston submarkets.
    --  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 believe 
this acquisition solidifies our investment mandate of acquiring high quality 
assets at attractive relative valuations across strategic major US markets. 
The REIT continues to see similar investment opportunities in our 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 4.3 million square feet 
of gross leasable area in 24 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/June2013/13/c8094.html

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

-0- Jun/13/2013 20:29 GMT


 
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