VICTORIA, BRITISH COLUMBIA--(Marketwired - April 26, 2013) - Partners Real Estate Investment Trust (the "REIT") (TSX:PAR.UN) announced today that it has completed the previously-announced acquisition of the Mariner Square Shopping Centre, a 97.8% occupied six-building open-air retail centre aggregating approximately 101,000 square foot of Gross Leasable Area ("GLA"). Anchored by a Save-On Foods grocery store, London Drugs and a BC Liquor Store, as well as a Starbucks coffee shop and Subway restaurant, approximately 89% of the property's total in-place rental income is derived from necessity-based national, regional and government tenants. The centre is situated in downtown Campbell River on the east coast of Vancouver Island about 260 kilometers north of Victoria.
The REIT paid approximately $25.8 million for the property, satisfied by the assumption of a $14.7 million current mortgage maturing in November 2017 bearing a mark-to-market interest rate of 3.5%, with the balance in cash. The centre is estimated to generate current in-place annualized Net Operating Income of approximately $1.7 million and $0.8 million in annualized Funds from Operations.
"We are pleased to continue the expansion of the Partners portfolio in Western Canada," commented Patrick Miniutti, CEO. "Mariner Square is a high-quality property with strong cash flows located in a continuously expanding market of Vancouver Island that is supported by two significant, long-term infrastructure projects."
About Partners REIT
Partners REIT is a growth-oriented real estate investment trust, which currently owns (directly or indirectly) 38 retail properties, well-located in British Columbia, Alberta, Manitoba, Ontario and Quebec, aggregating approximately 2.7 million square feet of leasable space. Partners REIT focuses on expanding and managing a portfolio of retail and mixed-use community and neighbourhood shopping centres located in both primary and secondary markets across Canada.
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.