Charter Real Estate Investment Trust

Charter Real Estate Investment Trust

November 09, 2007 08:30 ET

Charter Real Estate Investment Trust (TSX-V:CRH.UN) Announces Agreement to Acquire Shopping Centre in Chateauguay (Montreal)

TORONTO, ONTARIO--(Marketwire - Nov. 9, 2007) - Charter Real Estate Investment Trust ("Charter REIT") (TSX VENTURE:CRH.UN) is pleased to announce that on November 8, 2007 it has agreed to acquire (the "Acquisition") a shopping centre located at 160-180 Anjou Boulevard in Chateauguay (Montreal), Quebec (the "Property") for an aggregate purchase price before closing costs of $14.2 million (subject to customary adjustments). The Acquisition is expected to close on or about November 30, 2007.

Property Description

Charter REIT is acquiring a freehold interest in a two-storey, 115,758 square foot mixed use retail property. The Property is currently 100% leased with a total of 69,137 square feet of ground level space leased to retail tenants, while the remaining 46,621 square feet is leased to primarily government tenants on the second floor. The Property is strategically located in the heart of Chateauguay's commercial district on the south shore of Montreal, and is surrounded by Centre Regional Chateauguay to the east (an enclosed shopping centre owned and managed by RioCan REIT) and a free-standing Canadian Tire store to the west. The Property is anchored by Business Depot (25,855 s.f.), Cineplex Odeon (15,000 s.f.) and Yellow Group (10,240 s.f.), as well as Societe Immobiliere du Quebec (28,350 s.f.) on the second floor.

Property Acquisition

The estimated going-in yield for the Acquisition on an unlevered basis is approximately 8.05% before closing costs. Charter REIT has signed a commitment letter with a Canadian chartered bank to obtain a standard first mortgage loan in the amount of $9.0 million, secured by the Property (the "Loan"). The Loan is for a 5 year term with a 25-year amortization period. The Loan will bear interest at a rate of 140 basis points over the 5 year Government of Canada bond rate, which is approximately 5.54% as of November 8, 2007. The remainder of the Acquisition will be financed by Charter REIT drawing down on its operating/acquisition facility previously described in its press release dated June 29, 2007.

Charter REIT

Charter Real Estate Investment Trust is an open-end real estate investment trust established under the laws of the Province of Ontario. Charter REIT is focused on acquiring a portfolio of retail and mixed-use retail real estate comprised of stable cash flow and value-add properties from both primary and secondary markets throughout Canada, with the principal goal of generating a reliable and growing yield for its investors. Charter REIT owns five commercial real estate properties located in Ontario and Quebec.

This press release contains forward-looking statements. Forward-looking statements are based on a number of assumptions which may prove to be incorrect. Unless otherwise stated, all forward-looking statements speak only as of the date of this press release and Charter REIT undertakes no obligation to update such statements except as required by law.

The Exchange Tower
130 King Street West
Suite 2810, P.O. Box 104
Toronto, Ontario M5X 1A4
Telephone: (416) 364-5705
Fax: (416) 861-8166

The TSX Venture Exchange does not accept responsibility for the adequacy of this press release.

Contact Information

  • Charter Real Estate Investment Trust
    Ari Silverberg
    President and Chief Operating Officer
    (416) 364-5705
    (416) 861-8166 (FAX)