MONTREAL — PRO Real Estate Investment Trust (PRO REIT) has announced the completion of its previously announced joint venture agreement with Crestpoint Real Estate Investments Ltd. to jointly own an industrial-focused portfolio of 42 properties located in Atlantic Canada, including 41 properties in the Halifax region and one property in Moncton, N.B.
The portfolio is comprised of nearly 3.1 million square feet of gross leasable area, stated a release.
As part of the joint venture transaction, PROREIT and Crestpoint each acquired a 50 per cent interest in 21 primarily industrial properties currently owned by a third party, for a total purchase price of $228 million. In conjunction with the acquisition, PROREIT sold a 50 per cent interest in 21 of its currently owned properties to Crestpoint, having a total value of $227 million, for a total consideration to PROREIT of $113.5 million.
PROREIT, through its wholly owned property management business Compass Commercial Realty, will act as the sole property manager for the 42-property portfolio.
PROREIT’s acquisition in the 50 per cent interest in the 21 properties amounted to a cost to PROREIT of approximately $114 million, financed from the proceeds of a 50 per cent interest in approximately $148 million of new fixed-rate mortgages.
The balance of approximately $40 million was satisfied with cash on hand, including cash from the proceeds of the sale of a 50 per cent interest in existing properties to Crestpoint.