TORONTO, ONTARIO--(Marketwired - July 27, 2016) -
NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISTRIBUTION IN THE UNITED STATES
Agellan Commercial Real Estate Investment Trust (the "REIT") (TSX:ACR.UN) announced today that it has entered into agreements with certain private purchasers to sell a portion of the REIT's Consumers Road office complex in Toronto, Ontario ("Parkway Place").
The transaction involves the sale to the purchasers of the REIT's partnership interest in 165 Yorkland LP, a limited partnership created by the REIT to own and operate a car dealership and corporate head office at Parkway Place pursuant to a lease agreement with Porsche Cars Canada.
The transaction is expected to close during the second quarter of 2017 and is subject to numerous closing conditions, including the REIT substantially completing the construction of the dealership and the occupancy thereof by Porsche Cars Canada. There can be no assurance that all conditions to closing will be satisfied or waived.
The gross sale price for the transaction will be determined based on a capitalization rate applied to the annual minimum rent payable, as determined under the lease agreement with Porsche Cars Canada. Such gross sale price represents the fair value of the partnership as of today's date.
The disposition is consistent with the REIT's previously announced strategy of recycling capital by selling assets in certain markets that are no longer aligned with its core strategies in order to fund new investment opportunities. The REIT intends to focus on multi-tenant properties that provide enhanced diversity.
About Agellan Commercial Real Estate Investment Trust
The 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 was 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 4.7 million square feet of gross leasable area in 31 properties. The properties are primarily located in major urban markets in the United States and Canada.
This press release contains forward-looking information within the meaning of applicable securities legislation, which reflects the REIT's current expectations regarding future events. 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 that could cause actual results and events to differ materially from those that are disclosed in or implied by such forward-looking information. These forward-looking statements are made as of the date of this press release and, except as expressly required by applicable law, the REIT assumes no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events or otherwise.