True North Commercial Real Estate Investment Trust completes acquisition of federally leased property in downtown Ottawa
174,000 square feet, 98% occupancy, 6.4 years WALT, LEED Gold Certified
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TORONTO, August 22, 2022 /CNW/ – True North Commercial Real Estate Investment Trust (TSX: TNT.UN) (the “REITs“) is pleased to announce that it has completed the previously announced acquisition of a federally leased office building located at 400 Cumberland Street, Ottawa, Ontario (there “Ottawa Property“) and the renewal of its revolving credit facility. The acquisition of the Ottawa building is part of the REIT’s expansion strategy in urban areas and allows the REIT to capitalize on the operational efficiency of its existing assets downtown Ottawa. Renewal of the credit facility for a two-year term expiring on December 1, 2024 includes an increase of $60 million at $68 millionplus $8 million expiring on June 30, 2023 to align with the sale of 32071 South Fraser Way, Abbotsford, British Columbia.
The Ottawa property is an 11-story LEED Gold certified office building totaling 174,000 square feet with 53 underground parking spaces. The Ottawa property has an average remaining lease term of 6.4 years and is 98% occupied, with the majority leased to the federal government of Canada. The Ottawa property is close to the Rideau station on the recently completed O-Train LRT and is located in from Ottawa ByWard Market area with various surrounding amenities such as hotels, convention centers, restaurants and shopping malls.
The purchase price of the Ottawa property is $40.5 million, excluding closing costs. The acquisition was satisfied by a combination of first mortgage financing of approximately $30.4 million and the REIT’s secured credit facility.
About the REIT
The REIT is an unincorporated open-ended real estate investment trust established under the laws of the Province of Ontario. The REIT currently owns and operates a portfolio of 47 properties comprising approximately 5.0 million square feet in selected urban and strategic secondary markets across Canada. The REIT is focused on growing its portfolio primarily through acquisitions in Canada and other jurisdictions where opportunities exist.
SOURCE True North Commercial Real Estate Investment Trust
For further information: Daniel Drimmer, CEO, (416) 234-8444; or Tracy Sherren, President and Chief Financial Officer, (416) 234-8444