BTB Real Estate Investment Trust
TSX VENTURE : BTB.UN

BTB Real Estate Investment Trust

November 07, 2006 10:53 ET

BTB Real Estate Investment Trust Announces $25 Million of Conditional Acquisition of Commercial Properties

MONTREAL, QUEBEC--(CCNMatthews - Nov. 7, 2006) - The trustees of BTB Real Estate Investment Trust (TSX VENTURE:BTB.UN)(the "BTB REIT"), announced today that it has entered into conditional agreements to acquire commercial properties located in Longueuil, Laval and Montreal, in the Province of Quebec, for approximately $25 million, subject to the usual closing adjustments. The portfolio consists of strategically located buildings, with a low vacancy rate. BTB REIT expects to close on these transactions before December 31st, 2006. These acquisitions will bring the total assets value to over $36 million. BTB REIT began its operations on October 3rd, 2006.

A brief description of the properties follows:

2220 Lapiniere in Longueuil

This small strip center with a gross leasable area of 23,644 sq. ft. is anchored by TD Trust as well as Randstad. This building is well located in front of a major shopping center on the South Shore of Montreal, and serves the local community. The property is 95% leased and will be purchased for $2,300,000 representing a capitalization rate of 8.4%.

2004-2016 Rene-Laennec in Laval

The semi-commercial office strip with a gross leasable area of 26,780 sq. ft is the main commercial anchor in its neighborhood. The principal tenant is the Cite de la Sante Hospital. The strip center is fully leased and benefits from good covenant tenants. This property will be purchased for $2,450,000 representing a capitalization rate of 10.5%.

1400-1440 Antonio-Barbeau in Montreal

A stone's throw away from the "Marche Central" in the heart of the island of Montreal, this is an 80,462 sq. ft. converted industrial building which management believes could significantly increase in value by continuing the conversion into office space. The principal tenants are Private Expression and Cindy Anna Inc. As leases in place mature, tenant roll over will generate a significant increase in net operating income. This concrete building is fully leased and continues to benefit from a good geographical position. This property will be purchased for $4,100,000 representing a capitalization rate of 9.5%.

5810-5878 Sherbrooke Street East in Montreal

These 100% occupied buildings with a total gross leasable area of 36,400 sq. ft. house a CLSC (government operated medical clinic), National Bank of Canada as well as The Federation Independante des Syndicats Autonomes (FISA). Also Telus leases a portion of the roof for signage. The average lease maturity is 9 years. This property will be purchased for $6,600,000 representing a capitalization rate of 8.5%.

30, 50 and 85 St-Charles in Longueuil

These three properties with a total gross leasable area of 66,433 sq. ft. are located in Longueuil. They provide a strategic concentration of office buildings in the heart of Old Longueuil.

Old Longueuil is a reputable business district home to lawyers, bankers and business leaders. Great covenant quality and diversified sources of cash flow spread between 38 tenants.

The properties are 100% occupied, major tenants being Scotia Capital inc. and Caisse Desjardins de Longueuil. These properties will be purchased for $9,400,000 representing a capitalization rate of 8.7%

Mr. Michel Leonard, President and Chief Executive Officer of BTB REIT, stated that this first $25 million of acquisitions is in direct line with the acquisition strategy outlined in the final prospectus of BTB REIT dated September 26, 2006.

BTB REIT is a rapidly expanding, growth oriented real estate investment trust focused on increasing Unitholder value through strategic acquisitions.

Forward Looking Statements

This press release contains forward looking statements. Forward-looking statements are subject to risks, uncertainties and assumptions. Although the trustees of BTB REIT believe that the expectations represented in such forward-looking statements are reasonable, there can be no assurance that such expectations will prove to be correct. Some of the factors and risks which could affect future results and could cause results to differ materially from those expressed in the forward-looking statements contained herein include the impact of general economic conditions, industry conditions, governmental regulation, environmental risks, competition from other industry participants, stock market volatility, the ability to access sufficient capital from internal and external sources and the risk of fluctuation and variation in actual operating results, which variation may be material. A full description of these risk factors can be found in BTB REIT's final prospectus dated September 26, 2006 which is available electronically at www.sedar.com.

The forward-looking statements contained herein are expressly qualified in their entirety by this cautionary statement. The forward-looking statements included herein are made as of the date hereof and BTB REIT does not undertake any obligation to publicly update such forward-looking statements to reflect new information, subsequent events or otherwise.

The TSX Venture Exchange has in no way passed upon the merits of the proposed transactions and has neither approved nor disapproved the contents of this press release. The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this press release.

Contact Information

  • BTB Real Estate Investment Trust
    Mr. Michel Leonard
    President and Chief Executive Officer
    514-866-1990 ext. 236
    or
    BTB Real Estate Investment Trust
    Mr. George Rossi
    Vice President and Chief Financial Officer
    514-956-2526