Another DealBTB Real Estate Investment Trust announces the closing of an acquisition of four properties for $15.6M17:49 EDT Wednesday, August 13, 2008
MONTREAL, Aug. 13/CNW Telbec/ - The trustees of BTB Real Estate Investment Trust (TSX-V:BTB.UN) ("BTB") are proud to announce that, after the conclusion of thedue diligence process, it has now closed the acquisition of fourcommercial properties in the cities of Drummondville, Sherbrooke andTrois-Rivières, Province ofQuebec for a total purchase price of $15.6 M excluding closing costs. With the conclusion of this acquisition, BTB has now closed over $226M worth of properties representing over 2.2 M square feet of leasablearea. BTB management estimates that this transaction will generate anaccretive cash flow of$0.013 per outstanding unit.
1100 & 1108-1136 St-Joseph Boulevard, Drummondville, Quebec
This commercial strip mall of 25,176 square feet was built in 2003and is a prominent fixture of this community. The property is occupiedby a well-known financial institution, a prominent food store, awomen's health and fitness center, a frozen food retailer, a bistro anda restaurant.
747-805 King Street East, Sherbrooke, Quebec
This commercial building of 33,483 square feet is strategicallylocated on Sherbrooke's main artery and is occupied by prime tenantssuch as two major financial institutions, a frozen food retailer, arestaurant, a major food chain and a wireless phone retailer.
33-66 Jacques-Cartier Boulevard North, Sherbrooke, Quebec
Located in Sherbrooke's main shopping district, this strip mall of31,260 square feet is close to amenities. It is occupied by a majorfast-food chain, a travel agency, a cleaner, a liquor store, aprominent food store, a major video rental and sales store and a sushirestaurant.
665-669 Thibeau Boulevard, Trois-Rivières, Quebec
Well-located on one of Trois-Rivières main arteries, this strip mallof 13,471 square feet is fully-leased and occupied by one of Canada'sleading coffee/doughnut chains, as well as a prominent food store.
As part of this transaction, BTB secured a first ranking mortgage loan in the amount of $10.8 M for a term of 5 years, bearing interest at an annual rate of 5.51%, with CIBC Mortgages Inc.
As part of this transaction, compensation will be paid to AMTBManagement Inc. (a corporation controlled by Mr. Léonard), whichprovides the services of Messrs. Michel Léonard and Peter Polatos toBTB. Messrs. Léonard and Polatos are trustees of BTB. They havedisclosed their interest in the transaction and did not vote on theresolution of the trustees approving it. Its review and approval wasmade in the context of an accepted and generally used procedure insimilar circumstances.
Forward Looking Statements
This press release contains forward looking statements.Forward-looking statements are subject to risks, uncertainties andassumptions. Although the trustees of BTB believe that the expectationsrepresented in such forward-looking statements are reasonable, therecan be no assurance that such expectations will prove to be correct.Some of the factors and risks which could affect future results andcould cause results to differ materially from those expressed in theforward-looking statements contained herein include the impact ofgeneral economic conditions, industry conditions, governmentalregulation, environmental risks, competition from other industryparticipants, stock market volatility, the ability to access sufficientcapital from internal and external sources and the risk of fluctuationand variation in actual operating results, which variation may bematerial. A full description of these risks and uncertainties can befound in BTB's Short Form Prospectus datedMarch 13, 2008 and Annual Information Form dated April 28, 2008 which are available electronically at www.sedar.com.