52,000 square feet, 100% occupied, 84% government tenanted
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TORONTO, Sept. 13, 2021 /CNW/ - True North Commercial Real Estate Investment Trust (TSX: TNT.UN) (the "REIT") is pleased to announce it has agreed to acquire an office property located at 1112 Fort Street, Victoria, British Columbia (the "Victoria Property"). The acquisition of the Victoria Property continues the REIT's strategy of expanding into urban locations and will also further increase its existing presence in downtown Victoria.
"The REIT continues to improve the stability of its cash flow with the strategic redeployment of the proceeds from its recent disposition into an off-market acquisition comprised largely of government tenants." said Leslie Veiner, the REIT's Chief Executive Officer. "This acquisition is reflective of the REIT's strategy of acquiring properties in urban locations with a high concentration of government and credit rated tenants. It also builds on our existing footprint in the stable Victoria office market which is benefitting from one of the most compelling supply and demand fundamentals in Canada."
The purchase price of the Victoria Property is approximately $22.0 million, exclusive of closing costs. The acquisition is expected to be satisfied by a combination of: (i) first mortgage financing on the Victoria Property in the amount of approximately $14.3 million; and (ii) proceeds from the REIT's recent disposition of 5900 Explorer Drive, Mississauga. Closing is expected to occur mid October 2021.
Victoria Property
The Victoria Property is a 6-storey office building of approximately 52,000 rentable square feet with 11 surface parking stalls and 32 underground parking stalls. The Victoria Property is within walking distance to downtown Victoria; is located near two major arterial roads (Patricia Bay Highway and Trans-Canada Highway); and offers access to public transit. With a weighted average remaining lease term of 4.9 years, the building is 100% occupied including 84% by the Province of British Columbia.
About the REIT
The REIT is an unincorporated, open-ended real estate investment trust established under the laws of the Province of Ontario. The REIT currently owns and operates a portfolio of 45 properties consisting of approximately 4.7 million square feet in urban and select strategic secondary markets across Canada. The REIT is focused on growing its portfolio principally through acquisitions across Canada and such other jurisdictions where opportunities exist.
For more information regarding the REIT, please visit www.sedar.com or the REIT's website at www.truenorthreit.com.