EDMONTON, ALBERTA--(Marketwired - Jan. 10, 2014) - Melcor REIT (TSX:MR.UN) today announced that it has completed the acquisition of LC Industrial in Lethbridge, Alberta for $5.9 million (excluding closing costs).
Darin Rayburn, Chief Executive Officer of Melcor REIT, commented on the acquisition: "We are pleased to start 2014 with the acquisition of LC Industrial. This acquisition adds depth to our industrial property offering while adhering to our strategy of growing in the markets that we know best in order to leverage existing market knowledge. LC Industrial is a well-built asset, providing unitholders with strong and stable cash flows on an AFFO accretive basis."
Management expects that the acquisition will be accretive to AFFO by $0.012 per unit on an annualized basis. The acquisition was funded through the REIT's line of credit and available cash. Following the acquisition the REIT's Debt to Gross Book Value ratio increased to 50%, within our targeted range of 50%-55%.
Melcor REIT closed on the acquisition of Liberty Crossing in Red Deer, Alberta, a multi-tenant retail centre, with total GLA of 63,328 sq. ft. on 4.72 acres, on December 24, 2013.
About Melcor REIT
Melcor REIT is an unincorporated, open-ended real estate investment trust. Melcor REIT owns, acquires, manages and leases quality retail, office and industrial income-generating properties with exposure to high growth western Canadian markets. Its portfolio is currently made up of interests in 30 properties representing approximately 1.76 million square feet of gross leasable area located in and around Edmonton, Calgary, Lethbridge, and Red Deer, Alberta; Regina, Saskatchewan; and Kelowna, British Columbia. For more information, please visit www.MelcorREIT.ca.
This press release may contain forward-looking information within the meaning of applicable securities legislation, which reflects the REIT's current expectations regarding future events. Forward-looking information is based on a number of assumptions and is subject to a number of risks and uncertainties, many of which are beyond the REIT's control, that could cause actual results and events to differ materially from those that are disclosed in or implied by such forward-looking information. Such risks and uncertainties include, but are not limited to, general and local economic and business conditions; the financial condition of tenants; the REIT's ability to refinance maturing debt; leasing risks, including those associated with the ability to lease vacant space; and interest rate fluctuations. The REIT's objectives and forward-looking statements are based on certain assumptions, including that the general economy remains stable, interest rates remain stable, conditions within the real estate market remain consistent, competition for acquisitions remains consistent with the current climate and that the capital markets continue to provide ready access to equity and/or debt. All forward-looking information in this press release speaks as of the date of this press release. The REIT does not undertake to update any such forward-looking information whether as a result of new information, future events or otherwise.
Additional information about these assumptions and risks and uncertainties is contained in the REIT's filings with securities regulators.