Agellan Commercial REIT announces the closing of $18.25 million property
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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
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")
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
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
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-0- Jun/13/2013 20:29 GMT
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