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

Retrocom Mid-Market Real Estate Investment Trust

March 05, 2009 16:05 ET

Retrocom Mid-Market REIT Announces Financing Update

TORONTO, ONTARIO--(Marketwire - March 5, 2009) -

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

Retrocom Mid-Market Real Estate Investment Trust (the "REIT") (TSX:RMM.UN) announced today that it has closed a new $10.4 million financing, at an interest rate of approximately 6.95%, on 1224 Dundas St. Mississauga, Ontario, one of four properties purchased in July 2008 from a vendor group represented by SmartCentres.

As well, the REIT has renewed three mortgages maturing in 2009 totalling $18.3 million at an average interest rate of approximately 6.1%. The REIT's leverage ratio, Debt to Gross Book Value, is now approximately 54.2% including unsecured debentures.

The proceeds of the financing were used to repay $1.3 million previously outstanding on the operating line and a maturing mortgage of approximately $3.7 million on another property. The remaining funds will be used for general purposes.

The REIT has three additional mortgages maturing in mid to late 2009 totalling approximately $17.5 million. The REIT's leverage ratio, Debt to Gross Book Value, on these three mortgages is approximately 52%.

David Fiume, Chief Executive Officer of the REIT, said: "Refinancing and new financing has been more difficult in today's economic climate however to date the REIT has been successful with refinancing and securing financing. Seeking out and completing financings with new lenders has been key to this success. With a $5 million cash position and an undrawn operating line of $10 million we believe the REIT is in a good cash position."

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 REIT
    David Fiume
    Chief Executive Officer
    (416) 741-7999 x227
    (416) 741-7993 (FAX)
    Email: dfiume@rmmreit.com