KEYreit acquires small box retail properties in Alberta and closes $15 million credit facility

TORONTO, April 24, 2013 /CNW/ - KEYreit (TSX: KRE.UN) ("KEYreit" or the "REIT") announced today that it has closed the previously announced acquisition of two small box 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 was satisfied by new mortgage debt of $6.3 million bearing an interest rate of 3.8%, a term of 5 years and an amortization period of 20 years, and funds drawn from KEYreit's credit facility that closed on April 18, 2013.

One property is a single-tenant site leased to Shoppers Drug Mart and located in Olds, Alberta, while the second property is a two-tenant asset anchored by The Brick and located in Lloydminster, Alberta. The portfolio is 100% leased with an overall average remaining lease term of approximately 5.1 years and with 82% of the GLA comprising national tenants.

Credit Facility
KEYreit also announced today that on April 18, 2013, it closed the previously announced revolving credit facility for $15 million (the "Facility") with a Canadian Chartered Bank. The Facility is secured by 22 of the REIT's properties and is renewable annually at the lender's discretion. The Facility is in the form of rolling one-month bankers' acceptances ("BAs") bearing interest at the BA rate plus 3.00% or at the bank's prime rate plus 2.00%. The Facility also bears a stand-by fee of 0.75% on any undrawn portion. As at today's date the formula-based amount available under the Facility is $14.1 million, and $8 million has been drawn on the Facility. The Facility expires on April 17, 2014.

About KEYreit
KEYreit (TSX: KRE.UN) is Canada's premier small-box retail property owner with 227 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:
Kingsdale Shareholder Services Inc.
1-888-518-1562 toll-free in North America
1-416-867-2272 outside of North America (collect calls accepted)
[email protected]

Media, please contact: 
Trevor Boudreau
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