MONTREAL, April 28, 2015 /CNW Telbec/ – (TSXV: NEL.UN) Nobel Real Estate Investment Trust (the “REIT” or “Nobel REIT”) is pleased to announce the continued execution of its growth plan by completing today its previously announced acquisition of 1600 rue Montgolfier in Laval ( Quebec) and by announcing that it will acquire the 1901 Dickson / 5780 Ontario East in Montreal ( Quebec).
As previously announced in its April 9, 2015 press release, the REIT completed today the acquisition of an investment property located at 1600 rue Montgolfier in Laval. The property is an office building comprising 26,934 square feet, strategically located on 108,833 square feet land, at the corner of Highway 13 and Boulevard Saint-Martin. It is a sale-leaseback transaction that took place with a company related to the main tenant. The purchase price, excluding acquisition costs, is of $5.2 million. The effective capitalization rate of this acquisition is 6.96%. The fully occupied building houses the headquarters of Crescendo Systems Corporation, which occupies 21,031 square feet. Crescendo has signed a new 10-year term lease, effective today. A subsidiary of Shimadzu Canada occupies the rest of the building.
The payment of this acquisition is provided in part by the REIT’s equity and also by a first rank mortgage consented by MCAP Financial Corporation, in the amount of $3,380,000 for a 10 year term amortized over a period of 25 years, at a rate of 3.79%.
Agreement to acquire 1901 rue Dickson/5780 rue Ontario Est in Montreal
The REIT is also pleased to announce that it will acquire, following the private placement announced on April 23, 2015 and that is currently in progress, an investment property located at 1901 rue Dickson/5780 rue Ontario Est in Montreal. This is a 91,068 square foot building strategically located on a 164,647 square feet land north of rue Notre-Dame Est and at the entrance of Souligny avenue that gives direct access to highways 25, 20 and 40. This is a sale-leaseback transaction with a company related the building’s single tenant. The building houses the headquarters of Dubo Électrique Ltée (“Dubo”), a showroom and its main distribution center. Dubo has been the leader and the consultant specialist for electrical, lighting, automation and control in Quebec for more than 50 years. The purchase price, excluding acquisition costs, is $7.8 million. The effective capitalization rate of the acquisition is 7.15%. Dubo will sign, upon acquisition of the property by the REIT, a 10-year lease with three renewal options of five years each.
This transaction will be financed through a first mortgage consented by MCAP Financial Corporation in the amount of $5,460,000 at a rate that will be confirmed at time of closing. The team of Courtier R.C.S.I. Inc., real estate agents, acts as an intermediary in this transaction.
About Nobel REIT
Nobel REIT is an unincorporated open-ended real estate investment trust governed by the laws of the Province of Québec. Nobel REIT has been created for the purpose of acquiring and owning income producing properties. The REIT will focus on acquiring commercial retail, mixed-used retail, and industrial and suburban office properties in the primary and secondary markets in the Province of Québec. Nobel REIT currently owns nine properties located in Québec, comprising 422,904 square feet of gross leasable area.
Disclaimer – Safe Harbour Forward–Looking Statements
Forward-looking statements contained in this press release involve known and unknown risks, uncertainties and other factors that may cause actual results, performance and achievements of Nobel REIT to be materially different from any future results, performance or achievements expressed or implied by the said forward-looking statements.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
SOURCE Nobel Real Estate Investment Trust