TORONTO, ONTARIO--(Marketwired - Sept. 28, 2016) - Partners Real Estate Investment Trust ("Partners" or the "REIT") (TSX:PAR.UN) is pleased to announce that it has finalized an $11.9 million mortgage refinancing at the REIT's Evergreen Shopping Centre Property in Sooke, British Columbia.
The Evergreen Shopping Centre comprises approximately 68,000 square feet. As at June 30, 2016, the property was 98.1% occupied and represented approximately 3.2% of the REIT's annualized base rental revenue. The remaining vacancy has lease commitments which will result in no vacancy over the next quarter.
The mortgage has a five-year term, a 25-year amortization period, and an interest rate of 2.85%. Partners will devote $9.1 million of the mortgage towards repayment of the property's existing mortgage. The maturing mortgage carried an interest rate of 3.80% and was scheduled to mature on October 1, 2016. Net proceeds of $2.8 million, prior to financing costs, will be deployed towards general corporate matters and reinvestment into the REIT's existing property portfolio.
In association with this new mortgage, Partners will pay a broker fee of approximately $20,700 to First National Financial (TSX:FN)(TSX:FN.PR.A). Moray Tawse, a significant unitholder of the REIT, has an interest in First National Financial.
About Partners REIT
Partners REIT is a growth-oriented real estate investment trust focused on the expansion and management of a portfolio of 36 retail and mixed-use community and neighbourhood shopping centres. These properties are located in both primary and secondary markets across British Columbia, Alberta, Manitoba, Ontario, and Quebec, and comprise a total of approximately 2.5 million square feet of leasable space.
Certain statements included in this press release constitute forward-looking statements, including, but not limited to, those identified by the expressions "expect," "will" and similar expressions to the extent they relate to Partners REIT. The forward- looking statements are not historical facts but reflect Partners REIT's current expectations regarding future results or events. These forward looking statements are subject to a number of risks and uncertainties that could cause actual results or events to differ materially from current expectations, including access to capital, regulatory approvals, intended acquisitions and general economic and industry conditions. Although Partners REIT believes that the assumptions inherent in the forward-looking statements are reasonable, forward-looking statements are not guarantees of future performance and, accordingly, readers are cautioned not to place undue reliance on such statements due to the inherent uncertainty therein.