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/NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES/VANCOUVER,
Jan. 21, 2013 /CNW/ - Pure Industrial Real Estate Trust (TSX: AAR.UN) ("PIRET") announced today that it has entered into conditional agreements to acquire
$129.4 million of income producing properties (collectively, the "Acquisitions"), consisting of 15 industrial properties representing over 1.4 million square feet of gross leasable area ("GLA"). The Acquisitions consist of a property located in
Richmond, British Columbia (the "Richmond Property"), a portfolio of four properties located in
Edmonton, Alberta (the "
Edmonton Portfolio"), a portfolio of six properties located in
Delta, British Columbia,
Winnipeg, Manitoba, and
Kitchener, Ontario (the "East-West Portfolio"), a portfolio of two properties located in
Montreal, Quebec, and
Toronto, Ontario (the "East Portfolio"), a property located in
Halton Hills, Ontario (the "Halton Property") and a property located in
Balzac, Alberta (the "Balzac Property"). The properties are being acquired at a weighted average going-in capitalization rate of 6.99%.
PIRET also announced today that it has entered into an agreement to sell to a syndicate of underwriters led by Canaccord Genuity Corp., on a bought deal basis, 10,000,000 trust units ("Units") at a price of
$5.05 per Unit for gross proceeds to PIRET of
$50.5 million (the "Financing"). PIRET has also granted the underwriters an overallotment option to purchase up to an additional 1,500,000 Units on the same terms and conditions, exercisable at any time, in whole or in part, up to 30 days after the closing of the Financing. The Financing is expected to close on or about
February 12, 2013 and is subject to regulatory approval.
The net proceeds from the Financing, together with the proceeds of assumed and new mortgages, will be used to fund the Acquisitions, as follows: