PRO Real Estate Investment Trust (PROREIT) announced the conditional acquisition of four commercial properties worth $40.4 million.
They include a retail property and a light industrial building totaling 90,600 square feet in Atlantic Canada and two industrial buildings totaling 456,000 square feet in Woodstock, Ontario.
“We are very pleased with these transactions, which together result in the addition of $20 million of newer high quality assets to our portfolio on a net basis,” says James W. Beckerleg, president and chief executive officer of PROREIT. “The REIT’s portfolio will increase by approximately 250,000 square feet of gross leasable area upon closing of the transactions and enable us to increase the quality, size, and diversity of cash flow of the portfolio. We believe the new assets being acquired are superior to the older buildings being sold and that they will deliver higher returns and fit our overall portfolio objectives very well.”
The properties in Woodstock, built in 2007 and 2009, are fully leased to seven high quality national or multi-national tenants with excellent covenants and leases ranging in size from 26,000 square feet to 132,000 square feet. The buildings are made of 28 and 30 foot clear ceiling heights.
One proposed acquisition in Atlantic Canada is a free-standing retail property in Saint John, New Brunswick. The property, developed in 2016, is fully occupied by a provincial crown corporation under a long term lease with a remaining term of approximately 15 years. The other east coast acquisition for &5.7 million is described as a light industrial property that is well located and fully leased to a quality tenant. More details will be revealed at a later date.
“These transactions fit perfectly with our strategy of acquiring high quality commercial real estate in stable suburban markets,” adds Beckerleg. “With these four proposed acquisitions, we continue to expand our footprint in the Maritimes, while moving into strategic suburban markets in Southern Ontario.”