BROSSARD, QC,
Sept. 3, 2013 /CNW Telbec/ - BLF Real
Estate Investment Trust ("BLF REIT") (TSXV: BLF.UN)
announces today the acquisition of a multi-unit residential
building comprised of 306 units located at 3545-3577 Rivard Street
in the city of Laval, Québec for a
purchase price of $20,275,000. The
complex is comprised of eight three-storey rental apartment
buildings in the center of Laval
near the intersections of Saint-Martin East and Lesage Boulevards
with easy access to Highways 19, 25 and 440. Management estimates
that factoring in the fair value adjustment on the assumed
mortgage, the effective capitalization rate on the acquisition is
6.2%. An independent estimate of the fair market value of the
property was obtained which, on that same basis, translates into an
appraised value of approximately $23.7
million.
BLF REIT believes that this first acquisition in
the Laval market will allow BLF
REIT to establish a solid foundation for other transactions in this
important rental housing market. BLF REIT assumed the mortgage in
place of approximately $12,989,000 at
an interest rate of 5.04% and which matures on July 1, 2020. BLF REIT financed this acquisition
with its term acquisition facility.
"We are confident that our creative and
professional management approach will allow us to accomplish an
interesting repositioning of this asset which will be accretive"
said Mathieu Duguay, President and
Chief Executive Officer of BLF REIT.
Distribution Payment
BLF REIT equally announces a distribution of
$0.0308 per unit to the registered
holders of units at September 30,
2013, payable on October 15,
2013.
About BLF REIT
The principal business of BLF REIT is acquiring,
holding, developing, maintaining, improving, leasing, managing or
otherwise dealing with income-producing multi-unit residential
properties located throughout Québec. BLF REIT currently owns eight
properties located in Greater Montréal, Sherbrooke and Québec City totaling 1,054
apartment units.
Neither TSX Venture Exchange nor its
Regulation Services Provider (as that term is defined in the
policies of the TSX Venture Exchange) accepts responsibility for
the adequacy or accuracy of this release.
SOURCE BLF Real Estate Investment Trust