Fronsac Real Estate Investment Trust

Fronsac Real Estate Investment Trust

September 15, 2014 18:55 ET

Fronsac Announces an Acquisition

MONTREAL, QUEBEC--(Marketwired - Sept. 15, 2014) - (TSX VENTURE:GAZ.UN) Fronsac Real Estate Investment Trust ("Fronsac") announced that it has signed a letter of intent for the acquisition of all the issued and outstanding shares of Soginci Inc., a holding company which owns five (5) real estate properties. This arm's-length transaction of an approximate amount of 6.55M $ will be paid cash at closing. The real estate properties own by Soginci Inc. are located along Autoroute 20 in St-Julie (4) and in St-Mathieu-de-Beloeil (1) and are 100% leased.

Michel Lassonde, President and CEO of Fronsac stated: " We are pleased to announce this acquisition which will represent a significant increase in Fronsac's total portfolio. The properties are all well located and leased and will help further diversify our real estate portfolio."

The closing of this transaction is subject to customary conditions, notably to an adequate financing, and the approval of different competent authorities on the subject, including the approval of the TSX Venture Exchange, where required. No finder's fee will be paid in connection with this acquisition.

About Fronsac - Fronsac Real Estate Investment Trust is an open-ended trust that acquires and owns high quality commercial real estate properties, rented to strong tenants under long term, management free and net leases.

Forward-Looking Statements

This press release contains forward-looking statements and information as defined by applicable securities laws, including statements relating to Fronsac and expectations of the management regarding a proposed transaction and the expected benefits thereof. There is no assurance that the proposed transaction will be carried out and that the anticipated benefits will materialize. The proposed transaction is subject to approval and consent of stakeholders and there is no certainty that these will be achieved. Fronsac warns the reader that actual events may differ materially from current expectations due to known and unknown risks, uncertainties and other factors that could cause actual results to differ materially from the results anticipated in such statements. Among these include the risks related to economic conditions, the risks associated with the local real estate market, the dependence to the financial condition of tenants, the uncertainties related to real estate activities, the changes in interest rates, the availability of financing in the form of debt or equity, the effects related to the adoption of new standards, as well as other risks and factors described from time to time in the documents filed by Fronsac with securities regulators, including the management report. Fronsac does not update or modify its forward-looking statements even if future events occur or for any other reason, unless required by law or any regulatory authority.

The TSX Venture Exchange and its regulatory service provider (as that term is defined in the policies of the TSX Venture Exchange) decline all responsibility for the adequacy or accuracy of this release.

Contact Information

  • Fronsac Real Estate Investment Trust
    Michel Lassonde
    President and CEO
    (450) 536-5328