TORONTO, March 18, 2013 /CNW/ - KEYreit (TSX: KRE.UN) ("KEYreit" or the "REIT") announced today that it has waived due diligence conditions in an agreement to acquire two retail investment properties located in Alberta for a purchase price of $10 million comprising 50,494 square feet of gross leasable area ("GLA").
The total purchase price will be satisfied by new mortgage debt of $6.3 million bearing an interest rate of 3.8%, term of 5 years, and amortization period of 20 years, and funds drawn from KEYreit's previously announced operating line expected to close in early April 2013.
One property is a single-tenant site located in Olds, Alberta, while the second property is located in Lloydminster, Alberta, a new market for KEYreit. The portfolio is 100% leased with an overall average remaining lease term of approximately 5.2 years and with 82% of the GLA comprising national tenants.
| Property | GLA Square Feet |
Occupancy | Tenants |
| 4607 - 50th Avenue, Olds, Alberta |
19,777 | 100% | Shopper's Drug Mart |
| Lloydminster Plaza - 5519 - 44th Street, Lloydminster, Alberta |
30,717 | 100% | The Brick, Premium Spas & Billiards |
| Total Portfolio | 50,494 | 100% |
"This acquisition adds a twenty-fourth Shoppers Drug Mart location to our portfolio and executes KEYreit's strategy to grow our small box retail assets with a diversified tenant base of strong national tenants, including a new tenant for KEYreit, The Brick," said John Bitove, Chief Executive Officer of KEYreit. "We are also pleased to increase our presence in the high growth province of Alberta, continuing to expand our geographic footprint in Western Canada."
The acquisition is expected to close around mid-April 2013 and is subject to customary closing conditions.
About KEYreit
KEYreit (TSX: KRE.UN) is Canada's premier small-box retail property owner with 226 properties in nine provinces across Canada. KEYreit's properties are well located and geographically diverse across Canada with the majority of all properties containing long-term quadruple net leases.
To find out more about KEYreit (TSX: KRE.UN), visit our website at www.keyreit.com.
SOURCE: KEYreit
For investor information, please contact:
Teresa Neto
Chief Financial Officer
416-361-9953
[email protected]
KEYreit unitholders, please contact:
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Media, please contact:
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