Melcor Real Estate Investment Trust
TSX : MR.UN

Melcor Real Estate Investment Trust

December 11, 2014 16:30 ET

Melcor REIT Announces the Acquisition of White Oaks Square in Edmonton

EDMONTON, ALBERTA--(Marketwired - Dec. 11, 2014) - Melcor REIT (TSX:MR.UN) -

Acquisition Highlights

  • Office and retail mixed use centre with gross leasable area of 158,320 sq. ft. across 5 buildings on 18.98 acres
  • Over 2 acres with high potential for future development
  • 98% occupied; 68% of tenants are national companies
  • Immediately accretive to AFFO per unit
  • Excellent exposure along 137 Avenue retail corridor with multiple East/West access points

Melcor REIT today announced that it has completed the acquisition of White Oaks Square, a mixed use office and retail centre with 158,320 sq. ft. gross leasable area for $31.38 million (excluding closing costs). This deal was initially disclosed in Melcor REIT's third quarter results on November 3, 2014 and is also the property described as the "Third Party Edmonton Complex" in Melcor REIT's final short form prospectus dated November 25, 2014.

Darin Rayburn, Chief Executive Officer of Melcor REIT commented: "We continue to execute on our growth strategy with this acquisition, which brings our GLA growth to 27% since IPO. This acquisition demonstrates the advantage of our local market reputation and strong relationships. This well-situated property has high occupancy with national name brands, a balanced expiry profile, and an opportunity for additional development on the site."

Management expects the acquisition to be accretive to AFFO by $0.01 per unit on an annualized basis. The acquisition will be funded by cash on hand and the assumption of an existing mortgage on the property.

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 Canadian markets. Its portfolio is currently made up of interests in 33 properties representing approximately 2.0 million square feet of gross leasable area located across Alberta and in Regina, Saskatchewan and Kelowna, British Columbia. For more information, please visit www.melcorREIT.ca.

Forward-Looking Statements

This press release contains "forward-looking information" as defined under applicable Canadian securities law ("forward-looking information" or "forward-looking statements") which reflect management's expectations regarding objectives, plans, goals, strategies, future growth, results of operations, performance, business prospects and opportunities of the REIT. Statements other than statements of historical fact contained in this press release may be forward-looking information. Some of the specific forward-looking statements in this press release include, but are not limited to, statements with respect to the impact of the White Oaks Square acquisition on the REIT's business, operations and financial performance; and expectations, projections or other characterizations of future events or circumstances and the future economic performance of the REIT. The REIT has based these forward-looking statements on its current expectations and assumptions about future events, which may prove to be incorrect.

When relying on forward looking statements to make decisions, readers are cautioned not to place undue reliance on these statements, as forward-looking statements involve significant risks and uncertainties, should not be read as guarantees of future performance or results and do not take into account the effect of transactions or other items announced or occurring after the statements are made. All forward-looking information in this press release speaks as of the date of this press release. A number of factors could cause actual results to differ materially from the results discussed in the forward-looking statements. The REIT does not undertake any obligation to update any such forward-looking information, whether as a result of new information, future events or otherwise, except as required by applicable law.

Additional information about these assumptions and risks and uncertainties is contained in the REIT's filings with securities regulators.

Contact Information

  • Melcor Real Estate Investment Trust
    Business Contact
    Darin Rayburn
    Chief Executive Officer
    780.423.6931 (FAX)
    info@melcorREIT.ca

    Melcor Real Estate Investment Trust
    Investor Relations
    Jonathan Chia, CA
    Chief Financial Officer
    780.423.6931 (FAX)
    ir@melcorREIT.ca
    www.melcorREIT.ca