Nobel REIT announces the acquisition of two properties in Montreal and December distribution

MONTRÉAL, Dec. 19, 2014 /CNW Telbec/ - (TSXV: NEL.UN)  Nobel Real Estate Investment Trust ("Nobel REIT" or the "REIT") is pleased to announce that it has acquired two investment properties in the borough of Saint-Laurent of the City of Montreal, for a total of $10,650,000, excluding acquisitions costs.

The REIT acquired an industrial property comprising 114,265 square feet of gross leasable area, located on a 261,565 square feet site area at 935-965 rue Reverchon in the borough of Saint-Laurent in the city of Montreal, Quebec, for a purchase price of $7,850,000, excluding acquisition costs.  The occupancy of this property, located near the Pierre-Elliott-Trudeau International Airport and highways 13 and 520, is 100% and the main tenants are Sierra Flower Trading Inc. and Litron Canada; the leases expire over a period ranging from March 2017 to October 2021.  The effective capitalization rate of this acquisition is 6.96%.  

The REIT also acquired another industrial property, this one comprising 40,665 square feet of gross leasable area, located on a 101,353 square feet site area at 3490 rue Griffith in the borough of Saint-Laurent in the city of Montreal, Quebec, for a purchase price of $2,800,000, excluding acquisition costs.  Fully leased, this property is also located near the Pierre-Elliott-Trudeau International Airport and highways 13 and 520.  The main tenants are NCS International and Jet Equipment & Tools; the leases expire over a period ranging from February 2016 to July 2018.  The effective capitalization rate of this acquisition is 7.99%.

These acquisitions were financed by a loan in the amount of $6,970,000, secured by a first ranking hypothec on the acquired properties, with the balance of the purchase price satisfied with part of the net proceeds of the second tranche private placement completed on December 16, 2014.  The secured loan bears interest at a fixed rate of 3.69% for a five-year term, amortized over a period of 25 years; it was contracted from the Royal Bank of Canada.

Jean Teasdale, President and CEO of Nobel REIT commented: "With today's addition of two properties, the REIT now owns close to 400,000 square feet of gross leasable area, a growth of about 450% from the same date last year.  We intend to keep up the momentum and continue our growth in the coming months".

Distribution

Nobel REIT is also pleased to announce today a cash distribution of $0.000957 per trust unit of the REIT for the month of December 2014, and that, even if 17,500,000 units were issued during the month of December. The distribution will be payable on January 15, 2015 to unitholders of record as at December 31, 2014.

About Nobel REIT

Nobel REIT is an unincorporated open-ended real estate investment trust governed by the laws of the Province of Québec. Nobel REIT has been created for the purpose of acquiring and owning income producing properties. The REIT will focus on acquiring commercial retail, mixed-used retail, and industrial and suburban office properties in the primary and secondary markets in the Province of Québec. Nobel REIT currently owns eight properties located in Québec, comprising 396,712 square feet of gross leasable area.

Disclaimer – Safe Harbour Forward–Looking Statements

Forward-looking statements contained in this press release involve known and unknown risks, uncertainties and other factors that may cause actual results, performance and achievements of the REIT to be materially different from any future results, performance or achievements expressed or implied by the said forward-looking statements.

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

SOURCE: Nobel Real Estate Investment Trust

Louis Lemire, CPA, CA, Chief Financial Officer, Nobel Real Estate Investment Trust, 1185, Chemin du Tremblay, Suite 230, Longueuil, Quebec, J4N 1R4, Tel: [phone]; Renmark Financial Communications Inc., Lorraine Athaide: [email protected]; Mariam Ghoneim : [email protected]; Tel.: [phone] or [phone]; www.renmarkfinancial.com