July 27, 2016 16:48 ET
CALGARY, ALBERTA--(Marketwired - July 27, 2016) - Edgefront Real Estate Investment Trust (the "REIT") (TSX VENTURE:ED.UN) is pleased to announce that it has entered into an agreement to acquire a single tenant 150,000 sq ft industrial property located in Cambridge, Ontario. The purchase price of $8.4 million represents a going in cap rate of 7.5%. The purchase price will be satisfied by the issuance to the vendor of $1.9 million of units at an issue price of $1.90 per unit (which represents a premium to the current market price of the REIT's units as traded on the TSX Venture Exchange), and $6.5 million in cash, to be funded from the proceeds of a new 5-year term mortgage and available cash. The REIT has waived conditions and expects to close the transaction on or before August 22, 2016.
"We're pleased to announce our first acquisition of 2016, continuing our successful strategy of completing deals that grow our free cash flow and increase our market capitalization through issuing units as partial purchase price consideration," stated Kelly Hanczyk, the REIT's Chief Executive Officer. "We are currently exploring a number of opportunities and hope to announce additional acquisitions in the near future."
About the REIT
Edgefront REIT is a growth oriented real estate investment trust focused on increasing unitholder value through the acquisition, ownership and management of industrial properties located in primary and secondary markets in North America. The REIT currently owns a portfolio of 19 properties comprising approximately 1,030,000 square feet of rentable area.
The REIT has approximately 35,327,961 units issued and outstanding. Additionally, there are 4,962,565 Class B LP units of subsidiary limited partnerships of the REIT issued and outstanding.
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.
Edgefront Real Estate Investment TrustKelly C. HanczykPresident and CEO(403) 817-9497Edgefront Real Estate Investment TrustRob ChiassonCFO(403) 817-9496
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