March 30, 2007 16:05 ET

Charter Realty Holdings Ltd. (TSX-V: CRH) acquires Mega Centre Cote-Vertu

TORONTO, ONTARIO--(CCNMatthews - March 30, 2007) - Charter Realty Holdings Ltd. (the "Company") (TSX VENTURE:CRH) is pleased to announce that is has completed the acquisition of Mega Centre Cote-Vertu ("Mega Centre"), a shopping centre in St. Laurent, Quebec from RRVP Cote-Vertu Inc., for an aggregate cash purchase price of $36.7 million (before closing costs and customary adjustments).

Mega Centre

The total size of the Mega Centre property is approximately 19.0 acres, including 313,597 square feet of rentable retail space, warehouse space and surrounding lands. Currently, the retail space in the Mega Centre is 100% leased to a total of 16 tenants. Approximately 85% of the current rent is received from national and regional tenants, including Brault & Martineau, Winners, Business Depot, Future Shop, L'Oreal and L'Aubainerie. A 110,000 square-foot Rona-owned home improvement store is located adjacent to the property and acts as a secondary anchor, drawing customers to Mega Centre.

Acquisition financing

The Company obtained a standard first mortgage loan from a Canadian chartered bank in the amount of $27.525 million, secured by the property. The loan is for a 10-year term and is interest only for the first two years. Thereafter, the loan will be amortized over a 30-year term. The loan will bear interest at a rate of 5.327%.

The remainder of the purchase price has been financed through advances under previously announced acquisition facilities, with $6 million being drawn on a facility from KingSett Capital and $4.5 million being drawn on a facility from C.A. Bancorp Inc. (the Company's parent). Both facilities bear interest at an annual rate of 12%.

Charter Realty Holdings Ltd.

Charter Realty Holdings Ltd. 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. The Company owns four commercial real estate properties located in Ontario and Quebec.

The Exchange Tower
130 King Street West
Suite 2805, P.O. Box 104
Toronto, Ontario M5X 1A4
Telephone: (416) 861-8729
Fax: (416) 364-2398

The TSX Venture Exchange Inc. has in no way passed upon the merits of the transaction and has neither approved nor disapproved the contents of this press release.

Contact Information

  • Charter Realty Holdings Ltd.
    Ari Silverberg
    President and Chief Operating Officer
    (416) 861-8729, Ext. 520
    (416) 364-2398 (FAX)