Retrocom Mid-Market Real Estate Investment Trust
TSX : RMM.UN

Retrocom Mid-Market Real Estate Investment Trust

December 23, 2008 16:24 ET

Retrocom Mid-Market REIT Announces Close of Property Sale and Refinancing Update

TORONTO, ONTARIO--(Marketwire - Dec. 23, 2008) -

NOT FOR DISSEMINATION IN THE UNITED STATES OR TO ANY NON-CANADIAN SOURCE

Retrocom Mid-Market Real Estate Investment Trust (TSX:RMM.UN) (the "REIT") announced today that it has closed the sale of Plaza La Sarre in La Sarre, Quebec for approximately $4.5 million to a local buyer. Net proceeds of $4.4 million were used to pay down to $12.7 million the bridge loan in the original amount of $33.5 million. In July 2008 the REIT used the proceeds of the bridge loan to refinance a $30 million debenture and repay a property mortgage. This facility does not have any further scheduled principal repayments prior to its maturity in July 2010.

Overall in 2008, the REIT refinanced properties resulting in $41.5 million of mortgage financing at an average rate of approximately 6.6%. The REIT has also refinanced its $5 million demand line with a $10 million operating line in order to provide flexibility in pursuing its strategic property repositioning and development. Recently, the REIT has extended a mortgage on its Kenora property that was due in January 2009 for a two year term at 6.1%.

David Fiume, Chief Executive Officer of the REIT, said "The sale of Plaza La Sarre is in keeping with our plan to reposition our portfolio and in conjunction with our refinancing, allows us to invest strategically in our portfolio. We are very pleased with our financing accomplishments in 2008, in which we have financed or refinanced almost $85 million in debt in a very challenging market. We continue to pursue financings with our lenders and to seek out new lenders for our properties. Based on our track record and on-going discussions with lenders, we are cautiously optimistic that we will meet our financing targets for 2009."

About Retrocom Mid-Market REIT

Retrocom Mid-Market REIT is an Ontario unincorporated open-end real estate investment trust which focuses on owning and acquiring mid-market commercial properties in primary and secondary cities across Canada with the objective of producing a geographically diversified portfolio of properties with stable and growing cash flows.

This press release shall not constitute an offer to sell or the solicitation of an offer to buy, which may be made only by means of a prospectus, nor shall there be any sale of the Units in any state, province or other jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under securities laws of any such state, province or other jurisdiction. The Units of the Retrocom Mid-Market REIT have not been, and will not be registered under the U.S. Securities Act of 1933, as amended, and may not be offered, sold or delivered in the United States absent registration or an application for exemption from the registration requirements of U.S. securities laws.

Contact Information

  • Retrocom Mid-Market Real Estate Investment Trust
    David Fiume
    Chief Executive Officer
    (416) 741-7999 x227
    (416) 741-7993 (FAX)
    Email: dfiume@rmmreit.com