April 26, 2021

PROREIT Completes Acquisition of Three Light Industrial Buildings in Ottawa for $49.2 Million


MONTRÉAL, April 26, 2021 /CNW Telbec/ - PRO Real Estate Investment Trust (TSX: PRV.UN) ("PROREIT" or the "REIT") today announced that is has closed its previously announced acquisition of a 100% interest in three light industrial buildings in Ottawa, Ontario, totaling 283,495 square feet of gross leasable area ("GLA"), for an aggregate purchase price of $49.2 million (before closing costs), representing a going in capitalization rate of approximately 6.1%.

"PROREIT is pleased to have successfully completed the acquisition of our three recently announced high quality industrial properties in Ottawa, all institutionally owned and managed. With this accretive transaction, we are further expanding our footprint in Ontario, now representing approximately one-third of our gross leasable area," said James Beckerleg, CEO of PROREIT.

"The remaining nine previously announced property acquisitions located in Winnipeg, Manitoba, are expected to close in the second quarter, as we also continue to actively pursue the significant growth opportunities in our pipeline," added James Beckerleg

Ottawa Light Industrial Assets

Property Address

GLA (square feet)

1050-1051 Baxter Road


2615 Lancaster Road


2620-2650 Lancaster Road




The acquired portfolio is comprised of three small bay industrial assets strategically located within core industrial submarkets in the City of Ottawa with easy access to Highway 417 and major arterial roads. Totaling 283,495 square feet of GLA, they feature clear heights of 14 to 18 feet, efficient bay sizes, ample loading doors and practical layouts. The properties are currently 96% leased to a diverse mix of tenants with a weighted average lease term of 3.5 years. A majority of the leases include contracted rent steps.

The $49.2 million purchase price was substantially financed by the proceeds from a new $33.0 million five-year first mortgage at a rate of 2.87%. The balance of the purchase price was satisfied with cash on hand of $16.2 million from the REIT's recently completed $50.0 million private placement equity financing.

Proforma Portfolio

As a result of this transaction, PROREIT's portfolio now amounts to 4.7 million square feet of GLA and approximately $675 million of Gross Book Value1. PROREIT now owns a total of 10 industrial, mixed-use and office assets in the greater Ottawa region, with a combined GLA of approximately 902,000 square feet, with an increased Ontario footprint of approximately 1.6 million square feet, representing 31% of portfolio GLA and 33% of portfolio base rent.



See "Non-IFRS and Operational Key Performance Indicators". Represents Gross Book Value at December 31, 2020 pro forma an $8 million asset disposition completed in February 2021 and the transaction.

About PRO Real Estate Investment Trust

PROREIT is an unincorporated open-ended real estate investment trust established pursuant to a declaration of trust under the laws of the Province of Ontario. PROREIT was established in March 2013 to own a portfolio of diversified commercial real estate properties in Canada, with a focus on primary and secondary markets in Québec, Atlantic Canada and Ontario with selective expansion into Western Canada. PROREIT's portfolio is diversified by property type and geography.

For more information on PROREIT, please visit the website at:

Non-IFRS and Operational Key Performance Indicators

PROREIT's condensed consolidated financial statements are prepared in accordance with International Financial Reporting Standards ("IFRS"). In this press release, as a complement to results provided in accordance with IFRS, PROREIT discloses and discusses certain non-IFRS financial measures, including Gross Book Value. These non-IFRS measures are not defined by IFRS, do not have a standardized meaning and may not be comparable with similar measures presented by other issuers. PROREIT has presented such non-IFRS measures as management believes they are relevant measures of PROREIT's underlying operating performance and debt management. Non-IFRS measures should not be considered as alternatives to net income, cash generated from (utilized in) operating activities or comparable metrics determined in accordance with IFRS as indicators of PROREIT's performance, liquidity, cash flow, and profitability. For a full description of these measures and, where applicable, a reconciliation to the most directly comparable measure calculated in accordance with IFRS, please refer to the "Non-IFRS and Operational Key Performance Indicators" section in PROREIT's Management's Discussion and Analysis for the year ended December 31, 2020, available on SEDAR at

Forward-Looking Information

This news release contains forward-looking statements within the meaning of applicable securities legislation. Forward-looking statements are based on a number of assumptions and is 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 expected timing and closing of the remaining nine previously announced property acquisitions of the REIT, the acquisition pipeline of the REIT and the ability of PROREIT to execute its growth strategies. PROREIT's objectives and forward-looking statements are based on certain assumptions, including that (i) PROREIT will receive financing on favorable terms; (ii) the future level of indebtedness of PROREIT and its future growth potential will remain consistent with 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. Without limitation, there can be no assurance that PROREIT's remaining acquisitions, all of which are subject to standard closing conditions, will be completed.

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, which is available on SEDAR at

Neither the TSX nor its Regulation Services Provider (as that term is defined in the policies of the TSX) accepts responsibility for the adequacy or accuracy of this release.


For further information:

PRO Real Estate Investment Trust
James W. Beckerleg
President and Chief Executive Officer

PRO Real Estate Investment Trust
Gordon G. Lawlor, CPA, CA
Executive Vice President and Chief Financial Officer


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