hands-945x514

Partners REIT sells 11 Quebec retail properties

Monday, January 7, 2019

Partners Real Estate Investment Trust ( Partners REIT) announced it has found buyers for its 11 Quebec retail properties, the transaction is expected to close early in the second quarter of 2019.

According to a press release the sale of the properties from Partners REIT Quebec portfolio is expected to result in net cash proceeds to the REIT, after payment of related mortgages and transaction expenses, of approximately $65 million. In September 2018, the REIT retained BMO Capital Markets to broker the possible sale of some or all of its 11-property Quebec portfolio valued at that time for an estimated $194 million.

Following the sale of its properties in Quebec, the REIT will then own 11 retail properties in Ontario and one in Manitoba, aggregating approximately 623,000 square feet of leasable space. The board expects is considering a possible sale of either the REIT itself or the remaining 12 properties with the carrying value at approximately $120 million.

The REIT said it believes that the realizable value of these properties would currently be lower than $120 million as a result of negative market conditions in Ontario, including recent increases in the supply of retail properties on the market and reduced demand for these properties, which are generally resulting in higher capitalization rates and lower values particularly for retail properties in secondary markets such as those owned in Ontario by the REIT. Partners REIT will update the carrying value of its properties in the ordinary course when it releases its audited financial statements for the year ended December 31, 2018.

Leave a Reply

Your email address will not be published. Required fields are marked *