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August 5, 2022

PROREIT ANNOUNCES COMPLETION OF STRATEGIC JOINT VENTURE AGREEMENT WITH CRESTPOINT REAL ESTATE INVESTMENTS FOR 42 PROPERTIES

MONTRÉAL, Aug. 5, 2022 /CNW Telbec/ - PRO Real Estate Investment Trust ("PROREIT" or the "REIT") (TSX: PRV.UN) today announced the successful completion of its previously announced joint venture agreement with Crestpoint Real Estate Investments Ltd. ("Crestpoint") to jointly own an industrial-focused portfolio of 42 properties located in Atlantic Canada, including 41 properties in Dartmouth, Halifax Regional Municipality of Nova Scotia, and one property in Moncton, New Brunswick. The portfolio is comprised of nearly 3.1 million square feet of gross leasable area (GLA).

As part of the joint venture transaction, which is immediately accretive to earnings, PROREIT and Crestpoint each acquired a 50% interest in 21 primarily industrial properties currently owned by a third party, for a total purchase price of $228 million (before closing costs). In conjunction with the acquisition, PROREIT sold a 50% interest in 21 of its currently owned properties to Crestpoint, having a total value of $227 million, for a total consideration to PROREIT of $113.5 million (before closing costs).

PROREIT, through its wholly owned property management business Compass Commercial Realty, acts as the sole property manager for the entire 42-property portfolio and collects industry standard fees.

PROREIT 50% Acquisition Interest

Property Address

GLA

(Square feet)

202 & 204 Brownlow Ave, Dartmouth, NS

213,789

201 Brownlow Ave and 50 Eileen Stubbs Ave, Dartmouth, NS

159,792

7 Mellor Ave, Dartmouth, NS

122,480

71 Thornhill Dr, Dartmouth, NS

100,056

131, 133 & 135 Ilsley Ave, Dartmouth, NS

98,461

121 Ilsley Ave, Dartmouth, NS

97,864

75 Akerley Blvd, Dartmouth, NS

96,368

100 Ilsley Ave, Dartmouth, NS

76,385

100 Wright Ave, Dartmouth, NS

76,071

51 Raddall Ave, Dartmouth, NS

70,141

170 Joseph Zatzman Dr, Dartmouth, NS

64,895

105 Akerley Blvd, Dartmouth, NS

58,180

50 Troop Ave, Dartmouth, NS

53,911

32 Troop Ave, Dartmouth, NS

47,790

81 Wright Ave, Dartmouth, NS

45,130

109 Ilsley Ave, Dartmouth, NS

45,082

95 Akerley Blvd, Dartmouth, NS

38,106

30 Simmonds Dr, Dartmouth, NS

38,000

50 Garland Ave, Dartmouth, NS

35,537

10 Thornhill Dr, Dartmouth, NS

28,630

16 Garland Ave, Dartmouth, NS

10,888

Total

1,577,556

 

PROREIT's acquisition in the 50% interest in the 21 properties amounted to a cost to PROREIT of approximately $114 million (excluding closing costs), financed from the proceeds of a 50% interest in approximately $148 million of new fixed-rate mortgages.  The balance of approximately $40 million was satisfied with cash on hand, including cash from the proceeds of the sale of a 50% interest in existing properties to Crestpoint.

PROREIT 50% Interest Sale

Property Address

GLA

(Square Feet)

26-28 Topple Dr, Dartmouth, NS

201,110

320-340 Wright Ave, Dartmouth, NS

170,752

10 Morris Dr, Dartmouth, NS

118,952

222 Edinburgh Dr, Moncton, NB

94,682

11 Morris Dr, Dartmouth, NS

90,173

120 Troop Ave, Dartmouth, NS

87,214

55 Akerley Blvd, Dartmouth, NS

75,398

50 Akerley Blvd, Dartmouth, NS

62,980

10 Vidito Dr, Dartmouth, NS

61,988

101 Thornhill Dr, Dartmouth, NS

61,551

30-58 Mosher Dr, Dartmouth, NS

56,899

29-59 Mosher Dr, Dartmouth, NS

54,741

171 John Savage Ave, Dartmouth, NS

50,000

71 Ilsley Ave, Dartmouth, NS

47,072

101 Ilsley Ave, Dartmouth, NS

46,968

81 Ilsley Ave, Dartmouth, NS

46,873

58 Wright Ave, Dartmouth, NS

43,000

40 Thornhill Dr, Dartmouth, NS

32,139

50 Thornhill Dr, Dartmouth, NS

32,063

60 Thornhill Dr, Dartmouth, NS

31,929

45 Wright Ave, Dartmouth, NS

15,360

Total

1,481,844

 

PROREIT's sale of a 50% interest in 21 of its currently owned properties resulted in a consideration of approximately $49 million in cash received from Crestpoint (before closing costs), with Crestpoint also assuming a 50% interest in approximately $129 million of fixed-rate mortgages currently held by PROREIT.

The balance of the proceeds to PROREIT, net of the acquisition payment, will be used to reduce the REIT's credit facility.

About PROREIT

PROREIT (TSX: PRV.UN) is an unincorporated open-ended real estate investment trust established pursuant to a declaration of trust under the laws of the Province of Ontario. Founded in 2013, PROREIT owns a portfolio of high-quality commercial real estate properties in Canada, with a strong industrial focus in robust secondary markets.

About Crestpoint

Crestpoint Real Estate Investments Ltd. is a commercial real estate and mortgage investment manager dedicated to providing investors with direct access to a diversified portfolio of commercial real estate assets. Crestpoint's current portfolio has a market value in excess of $8.5 billion and is comprised of over 31 million square feet of commercial properties. Crestpoint is part of the Connor, Clark & Lunn Financial Group, a multiboutique asset management company that provides investment management products and services to institutional and high net-worth clients. With offices across Canada and in Chicago, London, and Gurugram, India, Connor, Clark & Lunn Financial Group and its affiliates are collectively responsible for the management of approximately $104 billion in assets. For more information, please visit: www.crestpoint.ca.

Forward-Looking Statements

This press release contains forward looking statements and forward-looking information (collectively, "forward-looking statements") within the meaning of applicable securities legislation, including statements relating to certain expectations, projections, plans and other information related to REIT's business strategy and future plans. Forward-looking statements are based on a number of assumptions and are subject to a number of risks and uncertainties, many of which are beyond PROREIT's control, that could cause actual results and events to differ materially from those that are disclosed in or implied by such forward-looking statements.

Forward-looking statements contained in this press release include, without limitation, statements pertaining to the expected performance of the transaction and its future impact on PROREIT's results. PROREIT's objectives and forward-looking statements are based on certain assumptions, including that (i) PROREIT will receive financing on favourable terms; (ii) the future level of indebtedness of PROREIT and its future growth potential will remain consistent with the REIT's current expectations; (iii) there will be no changes to tax laws adversely affecting PROREIT's financing capacity or operations; (iv) the impact of the current economic climate and the current global financial conditions on PROREIT's operations, including its financing capacity and asset value, will remain consistent with PROREIT's current expectations; (v) the performance of PROREIT's investments in Canada will proceed on a basis consistent with PROREIT's current expectations; and (vi) capital markets will provide PROREIT with readily available access to equity and/or debt.

The forward-looking statements contained in this news release are expressly qualified in their entirety by this cautionary statement. All forward-looking statements in this press release are made as of the date of this press release. PROREIT does not undertake to update any such forward-looking information whether as a result of new information, future events or otherwise, except as required by law.

Additional information about these assumptions and risks and uncertainties is contained under "Risk Factors" in PROREIT's latest annual information form and "Risk and Uncertainties" in PROREIT's management's discussion and analysis for the year ended December 31, 2021, which are available under PROREIT's profile on SEDAR at www.sedar.com.

SOURCE PROREIT

For further information:

For PROREIT: James W. Beckerleg
President and Chief Executive Officer
514-933-9552

Gordon G. Lawlor, CPA, Executive Vice President
Chief Financial Officer and Secretary
514-933-9552

For Crestpoint: Elizabeth Steel
Director
Client Relations
416-304-8743

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