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TORONTO, May 05, 2021 (GLOBE NEWSWIRE) -- Firm Capital Property Trust ("FCPT" or the "Trust") (TSXV: FCD.UN) is pleased to announce the closing of the previously announced acquisition of 132 units in three multi-residential buildings located in Lower Sackville, Nova Scotia (the “Lower Sackville Property”) for approximately $18.0 million (excluding transaction costs).
The Lower Sackville Property is located in proximity to downtown Halifax and is conveniently located to schools, public transportation, shopping, restaurants, and entertainment. The Lower Sackville Property has enjoyed strong 98% occupancy rates or higher since 2018. The Lower Sackville Property was purchased for approximately $136,300 per unit or $113 per square foot.
The Lower Sackville Property was financed with a new $13.7 million mortgage with a Canadian Chartered Bank for an interest rate of approximately 2.4%, term of five years and a 30 year amortization.
The Trust acquired the Lower Sackville Property such that the Trust owns 70% and private clients affiliated with certain members of senior management and the board of trustees of the Trust owning the remaining 30% in a side-by-side alignment of interest structure. The Trust's portion of the acquisition price was approximately $12.7 million (excluding transaction costs).
The Trust funded its equity requirement through existing cash resources, including credit facilities. The Lower Sackville Property is expected to be immediately accretive to AFFO.
ABOUT FIRM CAPITAL PROPERTY TRUST
Firm Capital Property Trust is focused on creating long-term value for Unitholders, through capital preservation and disciplined investing to achieve stable distributable income. In partnership with management and industry leaders, The Trust’s plan is to own as well as to co-own a diversified property portfolio of multi-residential, flex industrial, net lease convenience retail, and core service provider professional space. In addition to stand alone accretive acquisitions, the Trust will make joint acquisitions with strong financial partners and acquisitions of partial interests from existing ownership groups, in a manner that provides liquidity to those selling owners and professional management for those remaining as partners. Firm Capital Realty Partners Inc., through a structure focused on an alignment of interests with the Trust sources, syndicates and property and asset manages investments on behalf of the Trust.
FORWARD LOOKING INFORMATION
This press release may contain forward-looking statements. In some cases, forward-looking statements can be identified by the use of words such as "may", "will", "should", "expect", "plan", "anticipate", "believe", "estimate", "predict", "potential", "continue", and by discussions of strategies that involve risks and uncertainties. The forward-looking statements are based on certain key expectations and assumptions made by the Trust. By their nature, forward-looking statements involve numerous assumptions, inherent risks and uncertainties, both general and specific, that contribute to the possibility that the predictions, forecasts, projections, acquisitions as outlined and various future events will not occur. Although management of the Trust believes that the expectations reflected in the forward-looking statements are reasonable, there can be no assurance that future results, levels of activity, performance or achievements will occur as anticipated. Neither the Trust nor any other person assumes responsibility for the accuracy and completeness of any forward-looking statements, and no one has any obligation to update or revise any forward-looking statement, whether as a result of new information, future events or such other factors which affect this information, except as required by law.
This press release shall not constitute an offer to sell or the solicitation of an offer to buy, which may be made only by means of a prospectus, nor shall there be any sale of the Units in any state, province or other jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under securities laws of any such state, province or other jurisdiction. The Units of the Firm Capital Property Trust have not been, and will not be registered under the U.S. Securities Act of 1933, as amended, and may not be offered, sold or delivered in the United States absent registration or an application for exemption from the registration requirements of U.S. securities laws.
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.
For further information, please contact:
President & Chief Executive Officer
Chief Financial Officer
For Investor Relations information, please contact:
Director, Investor Relations