TORONTO, ONTARIO--(Marketwired - Aug. 27, 2013) -
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Retrocom Real Estate Investment Trust (TSX:RMM.UN) ("Retrocom REIT" or "REIT") today announced that it has completed the acquisition of two shopping centres from Walmart Canada Realty Inc. and SmartCentres Realty Inc. for an initial consideration of approximately $61.4 million for in-place tenancies. Additional consideration is subject to the purchase of future tenancies on an earn-out basis.
The shopping centres are located in Mission, British Columbia, and Fergus, Ontario. Together they consist of approximately 226,000 square feet, with 215,000 sq.ft. of in-place tenancies and potential for an additional 11,000 sq.ft. of future tenancies to be purchased on an earn-out basis. Walmart accounts for over 80% of in-place gross revenue, and other well recognized tenants, such as LCBO and Dollarama, generate an additional 14% of in-place gross revenue.
The total purchase price was satisfied by amounts secured by conventional first mortgage financing on each shopping centre, the issuance of Class B limited partnership units ("LP Units"), and cash on hand. A total of 650,000 LP Units were issued to SmartCentres entities at $5.01/unit for proceeds of approximately $3.26 million. The LP Units are exchangeable for units of Retrocom REIT.
Total Asset Base Reaches One Billion Dollars
This acquisition increases the REIT's total asset base to over one billion dollars, marking a significant milestone in the growth of Retrocom REIT and further improves the quality of its asset base.
With the acquisition of two new Walmart Supercentre anchored shopping centres, the REIT has added high quality cash flow from these recently constructed new format shopping centres. Retrocom REIT now has nine Walmart locations totaling over 760,000 sq.ft. representing 11.5% of the REIT's leaseable area, and further solidifies Walmart's status as the REIT's largest tenant in terms of area and revenue.
About Retrocom REIT
Retrocom REIT is an unincorporated, open-end real estate investment trust which focuses on owning and acquiring retail properties across Canada with the goal of enhancing long-term Unitholder value.
This press release may contain forward-looking statements. In some cases, forward-looking statements can be identified by the use of words such as "may", "will", "should", "expect", "plan", "anticipate", "believe", "estimate", "predict", "potential", "continue", and by discussions of strategies that involve risks and uncertainties. The forward-looking statements are based on certain key expectations and assumptions made by the REIT regarding, among other things, the use of the net proceeds from the offering, and the closing of the acquisition. By their nature, forward-looking statements involve numerous assumptions, inherent risks and uncertainties, both general and specific, that contribute to the possibility that the predictions, forecasts, projections and various future events will not occur. Although management of the REIT believes that the expectations reflected in the forward-looking statements are reasonable, there can be no assurance that future results, levels of activity, performance or achievements will occur as anticipated. Neither the REIT nor any other person assumes responsibility for the accuracy and completeness of any forward-looking statements, and no one has any obligation to update or revise any forward-looking statement, whether as a result of new information, future events or such other factors which affect this information, except as required by law.