Maplewood International REIT Announces $85 Million of Property Acquisitions in the Netherlands

Maplewood International REIT Announces $85 Million of Property Acquisitions in 
the Netherlands 
NEWS RELEASE TRANSMITTED BY Marketwired 
FOR: Maplewood International Real Estate Investment Trust 
TSX VENTURE SYMBOL:  MWI.UN 
FEBRUARY 24, 2014 
Maplewood International REIT Announces $85 Million of Property Acquisitions in
the Netherlands 
MISSISSAUGA, ONTARIO--(Marketwired - Feb. 24, 2014) -  
NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN
THE UNITED STATES 
Maplewood International Real Estate Investment Trust (TSX VENTURE:MWI.UN)
("Maplewood" or the "REIT") announced today that it has
conditionally agreed to acquire (collectively, the "Acquisitions")
four high-quality office properties (collectively, the "Acquisition
Properties") in the Netherlands for an aggregate purchase price of
approximately $85 million (EUR55,725,000), subject to customary adjustments.
The Acquisition Properties are comprised of four single-tenant head office
buildings located in or near the primary urban markets of Amsterdam, Rotterdam
and The Hague, with total gross leasable area ("GLA") of
approximately 254,552 square feet. The Acquisition Properties include a
flagship institutional grade building in Amsterdam with approximately 145,980
square feet of GLA, constructed in 2008 and custom designed by Atradius Credit
Insurance, one of the world's leading credit insurers, to serve as its new
global head office and 100% leased for approximately 9.3 years with an
additional 15 years of lease renewal terms. All buildings serve as head offices
for leading multi-national companies, with recognizable global brands and
diversified across industries. 
Highlights of the Acquisitions 
/T/ 
--  Overall occupancy of 100% and weighted average lease term of 
approximately 9.0 years 
--  All leases are net leases and include annual inflation indexed rent 
--  Exceptional estimated net operating income ("NOI") margin of 
approximately 91% 
--  Attractive estimated capitalization rate of approximately 8.2% 
--  Modern buildings with an average construction age of approximately 5.1 
years 
--  Compelling investing spread to the REIT of approximately 460 basis 
points based on the new mortgage debt available with an interest rate of 
approximately 3.6% 
--  Conservative leverage profile for the REIT, with expected pro forma 
total debt to gross book value ("GBV") of approximately 54% 
--  Strong estimated interest coverage ratio for the REIT of approximately 
4.3x  
/T/ 
"I am delighted that these Acquisitions will reinforce our unique
investment theme of acquiring high-quality long-term leased commercial
properties in the Netherlands," said Kursat Kacira, Chief Executive
Officer of the REIT. "These Acquisitions contribute to our goal of
diversifying the REIT's asset base and generating high risk-adjusted
investment returns. Europe has been the epicentre of global institutional real
estate investing, attracting the world's greatest share of inter-regional
net capital flows. Maplewood in uniquely positioned to build a strong property
portfolio in our initial target market of the Netherlands, generating both
income and growth for our unitholders." 
Description of the Acquisitions 
The REIT has entered into conditional agreements to acquire the Acquisition
Properties from three separate, unrelated, and arm's length vendors. The
REIT will acquire the Acquisition Properties for an aggregate purchase price of
approximately $85 million (EUR55,725,000), subject to customary adjustments.
The purchase price for the Acquisition Properties represents an estimated
capitalization rate of approximately 8.2% and will be satisfied by a
combination of approximately $39 million in cash and approximately $46 million
(EUR30,000,000) of new mortgage debt. The new mortgage debt available to the
REIT is non-recourse, has an interest rate of approximately 3.6%, a term to
maturity of approximately 5 years, and an amortization period of approximately
50 years. Based on the acquisition capitalization rate and the new mortgage
debt interest rate, the resulting investing spread to the REIT is expected to
be approximately 460 basis points. Upon completion of the Acquisitions,
management expects that the REIT's pro forma debt to gross book value will
be approximately 54% and that its estimated interest coverage ratio will be
approximately 4.3x. 
The Acquisitions are subject to customary closing conditions, including
financing and TSXV approval. 
Description of the Acquisition Properties 
Atradius Property 
The Atradius Property, a modern single-tenant 12-storey office building located
in Amsterdam, was constructed in 2008 and was custom designed by the tenant,
Atradius Credit Insurance N.V. ("Atradius") to serve as its new
global head office. The Atradius Property is a prestigious institutional grade
office building, with a sculptural design and slender all-glass facade,
creating a transparent and dynamic crystal shaped structure. Atradius is one of
the world's leading credit insurers, with a 31% market share of the global
credit insurance market. Atradius' products and services help protect
companies throughout the world from payment risks associated with selling
products and services on credit. Atradius has access to credit information on
more than 100 million companies worldwide, enabling it to make over 20,000
credit decisions daily. Atradius operates in 45 countries through 160 offices,
with approximately 3,300 employees. Atradius has an 85-year history in the
credit insurance business and enjoys strong investment grade credit ratings,
with "A (excellent) outlook stable" from A.M. Best and "A3
outlook stable" from Moody's. 
The Atradius Property is 100% leased to Atradius, with annual inflation indexed
rent, and has a remaining base lease term of approximately 9.3 years. The lease
also includes three consecutive 5-year renewal terms. The Atradius Property
comprises approximately 145,980 square feet (approximately 13,562 square
metres) of gross leasable area and includes a basement level for storage, a
conference centre, a full service cafeteria, an Internet cafe, an executive
dining area, on-site underground parking with 134 spaces, and additional
on-site surface parking with 10 spaces. 
The Atradius Property is located in the prominent Riekerpolder business
district, which is centrally located between the prestigious South Axis
business district and Amsterdam's Schipol International Airport. The
Riekerpolder business district is a modern area characterized by large-scale
office buildings that are home to numerous well known international companies,
including IBM, PwC, Mexx, LEO Pharma, and Brunel. The Atradius Property is
situated in a highly visible part of the Riekerpolder business district and is
easily accessible by major highway arteries and public transportation. 
CSC Property 
The CSC Property, a modern single-tenant 5-storey office building located in
Leiden, a university city since 1575 and approximately 37 kilometres from
Amsterdam, was constructed in 2008 and serves as the Dutch head office for the
Healthcare Group of Computer Sciences Corporation ("CSC"), a leading
global provider of information technology services headquartered in Falls
Church, Virginia and listed on the New York Stock Exchange, with approximately
90,000 employees worldwide and a corporate history dating back to 1959. The CSC
Property is 100% leased to iSoft Netherlands B.V., a wholly-owned subsidiary of
CSC, with annual inflation indexed rent, and has a remaining base lease term of
approximately 7.0 years. The lease also includes two consecutive 5-year renewal
terms. The CSC Property comprises approximately 43,077 square feet
(approximately 4,002 square metres) of gross leasable area and includes a
cafeteria and on-site surface parking with 96 spaces. 
The CSC Healthcare Group is one of the largest specialist healthcare
information technology software providers in the world, with a strong presence
in Europe and market leadership in the Netherlands. The CSC Property is
strategically located in the Leiden Bio Science Park and within walking
distance to the Leiden Central Station, the 5th largest train station in the
Netherlands, and to Leiden's city centre. The Leiden Bio Science Park,
established around the world-renowned Leiden University Medical Centre, is the
leading life sciences cluster in the Netherlands and ranks among the top five
most successful science parks in Europe. It is home to over 85 dedicated
medical life sciences companies and institutions (the Netherlands' largest
such concentration), including the largest number of bioscience start-ups in
the Netherlands, and including several multi-national companies and
internationally acclaimed knowledge institutions. 
Kawasaki Property 
The Kawasaki Property, a modern single-tenant 3-storey office building and
integrated warehouse and training centre, is located in Hoofddorp,
approximately 16 kilometres from Amsterdam and approximately 5 kilometres from
Amsterdam's Schipol International Airport, the largest airport in the
Netherlands. The Kawasaki Property was constructed in 2008 and was custom
designed by the tenant, Kawasaki Motors Europe N.V. ("Kawasaki
Europe"), a wholly-owned subsidiary of Kawasaki Heavy Industries Ltd.
("Kawasaki"), to serve as Kawasaki's new European head office.
Kawasaki is a leading global manufacturing and engineering conglomerate
headquartered in Tokyo, Japan and listed on the Tokyo Stock Exchange, with
approximately 34,000 employees worldwide and a corporate history dating back to
1878. The Kawasaki Property is 100% leased to Kawasaki Europe, with annual
inflation indexed rent, and has a remaining base lease term of approximately
10.0 years. The lease also includes three consecutive 5-year renewal terms. The
Kawasaki Property comprises approximately 41,075 square feet (approximately
3,816 square metres) of gross leasable area, of which approximately 12,368
square feet (approximately 1,149 square metres) are used for an integrated
warehouse and training centre, and includes a showroom on the ground floor and
on-site surface parking with 93 spaces. 
Kawasaki Europe is a leading European manufacturer and distributor of the world
famous Kawasaki-brand motorcycles, all-terrain vehicles ("ATVs"), and
Jet Ski(R) personal watercrafts. The Kawasaki Property is strategically located
in the prominent De President business park in Hoofddorp, surrounded by major
transportation arteries and within close proximity to Amsterdam's Schipol
International Airport. The De President business park is characterized by
modern office and industrial facilities for a variety of international
companies. The Kawasaki Property also serves as the head training centre for
all of Kawasaki Europe's regional offices across Europe. 
Sole Property 
The Sole Property, a modern single-tenant 4-storey office building located in
Amsterdam, was constructed in 2012 and was custom designed by the tenant, Sole
Technology Europe B.V. ("Sole Europe"), a wholly-owned subsidiary of
U.S. based Sole Technology Inc. ("Sole"), to serve as Sole's new
European head office. Sole, a multi-national private company based in Lake
Forest, California with a 20-year history, is a globally recognized leader in
authentic action sports footwear and apparel, available in more than 70
countries, and is one of the largest private action sports footwear and apparel
companies in the world. The Sole Property is 100% leased to Sole Europe, with
annual inflation indexed rent, and has a remaining base lease term of
approximately 8.6 years. The lease also includes unlimited consecutive 5-year
renewal terms. The Sole Property comprises approximately 24,402 square feet
(approximately 2,267 square metres) of gross leasable area and includes a
showroom on the ground floor, a cafeteria, and on-site covered surface parking
with 18 spaces. 
The Sole Property is located in an area within the Port of Amsterdam known as
Houthavens, a new and highly sought-after mixed-used (office/residential)
development zone, in close proximity to central Amsterdam. The Houthavens area
is home to numerous modern head office buildings for a variety of companies in
the creative industries such as media, entertainment, technology, fashion, and
design. The Sole Property was custom designed by Sole with innovative
applications for reducing energy consumption and minimizing environmental
impact. The Sole Property benefits from a state-of-the-art heating and cooling
system. In addition, 60 solar panels have been fitted on the roof of the
building and the entire building is fitted with LED lighting, motion sensors,
and advanced insulation. 
About Maplewood International REIT 
The REIT is an unincorporated, open-ended real estate investment trust
established under the laws of the Province of Ontario. The REIT is a Canadian
based growth-oriented international REIT, established to invest in high-quality
income producing commercial real estate outside of Canada. The REIT's
initial geographic focus is on the investment grade countries of Europe, with
an initial target market of the Netherlands. The REIT's mission is to
provide Canadian investors with high-quality international real estate
diversification and deliver stable, sustainable, and growing cash flows to
unitholders, on a tax-efficient basis. 
About the Netherlands 
The Netherlands, one of the core founding members of the European Union and the
Eurozone, enjoys an elite investment grade credit rating (Fitch: AAA,
Moody's: Aaa, S&P: AA+). The Netherlands has a strong economic
position within Europe and globally, ranked as the 3rd highest gross domestic
product ("GDP") per capita in the Eurozone and the 5th largest
economy by GDP in the Eurozone, both according to the International Monetary
Fund (World Economic Outlook Database, April 2013). 
Forward-Looking Information 
This news release may contain forward-looking information within the meaning of
applicable securities legislation. 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, which could cause actual
results and events to differ materially from those that are disclosed in or
implied by such forward-looking information. 
The REIT's objectives and forward-looking statements are based on certain
assumptions, including that (i) the REIT will receive financing on favourable
terms; (ii) the future level of indebtedness of the REIT and its future growth
potential will remain consistent with the REIT's current expectations;
(iii) there will be no changes to tax laws adversely affecting the REIT's
financing capacity or operations; (iv) the impact of the current economic
climate and the current global financial conditions on the REIT's
operations, including its financing capacity and asset value, will remain
consistent with the REIT's current expectations; (v) the performance of
the REIT's investments in the Netherlands will proceed on a basis
consistent with the REIT's current expectations; and (vi) capital markets
will provide the REIT with readily available access to equity and/or debt. 
The forward-looking statements made in this press release relate only to events
or information as of the date hereof. Except as required by applicable law, the
REIT undertakes no obligation to update or revise publicly any forward-looking
statements, whether as a result of new information, future events or otherwise,
after the date on which the statements are made or to reflect the occurrence of
unanticipated events. 
The TSXV has neither approved nor disapproved the contents of this press
release. 
Neither the TSXV nor its Regulation Services Provider (as that term is defined
in policies of the TSXV) accepts responsibility for the adequacy or accuracy of
this release. 
Non-IFRS Financial Measures 
Certain terms used in this press release such as NOI and capitalization rate
are not measures defined under International Financial Reporting Standards
("IFRS") as prescribed by the International Accounting Standards
Board, do not have standardized meanings prescribed by IFRS, and should not be
construed as alternatives to profit/loss, cash flow from operating activities
or other measures of financial performance calculated in accordance with IFRS.
NOI and capitalization rate as computed by the REIT may differ from other
issuers' methods and accordingly may not be comparable to measures used by
other issuers. 
NOI is a measure of operating performance based on income generated from the
properties of the REIT. Management considers this non-IFRS measure to be an
important measure of the REIT's operating performance and uses this
measure to assess the REIT's property operating performance on an
unlevered basis. 
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FOR FURTHER INFORMATION PLEASE CONTACT: 
Maplewood International Real Estate Investment Trust
Kursat Kacira
Chief Executive Officer
(905) 361-6818
kkacira@maplewoodreit.com
or
Maplewood International Real Estate Investment Trust
Kimberly Tam
Chief Financial Officer
(905) 361-6828
ktam@maplewoodreit.com 
INDUSTRY:  Financial Services - Commercial and Investment Banking, Real Estate
and Construction - Commercial Real Estate 
SUBJECT:  RLE 
-0-
-0- Feb/24/2014 23:31 GMT
 
 
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