TORONTO, June 30, 2015 /CNW/ - Slate Office REIT (the
"REIT") (TSX: SOT.UN) (TSX: SOT.WT) is pleased to announce the
closing of its previously announced acquisition (the "Acquisition")
of a portfolio of 14 commercial properties (the "Portfolio") from
Fortis Properties Corporation (the "Vendor") for an aggregate
purchase price of $430
million. As part of the Acquisition, the REIT entered
into a strategic co-ownership agreement with a Canadian
institutional real estate fund pursuant to which the REIT acquired
a 10% interest in three of the properties and the co-owner acquired
a 90% interest.
The Acquisition, which consists principally of high quality
office buildings located in major markets in Atlantic Canada, significantly enhances the
REIT's position as an office REIT. The Acquisition nearly doubles
the REIT's asset base and creates a national footprint with 49
properties and total gross leasable area ("GLA") of 5.4 million
square feet. The transaction delivers on the REIT's stated growth
strategy and focus on office assets.
The REIT's proportionate share of the Portfolio purchase price
is $304 million before transaction
costs. The Acquisition was primarily funded with proceeds from an
$80 million public offering of
subscription receipts of the REIT, a $35
million private placement of units of the REIT to Fortis
Inc., an affiliate of the Vendor, and $189
million from new acquisition credit facilities.
The Portfolio comprises some of Atlantic Canada's highest-quality commercial
buildings, including ten office buildings, one mixed-use office
complex and three retail centres totalling 2.8 million square feet
of GLA. Notable regional addresses include Maritime Centre in
Halifax, Nova Scotia; the Blue
Cross Centre in Moncton, New
Brunswick; and Fortis Place
in St. John's, Newfoundland. The
REIT's proportionate interest in the Portfolio comprises 2.5
million square feet of GLA.
New Board Appointment
The Board of Trustees of the
REIT is pleased to announce the appointment of Nora Duke to the Board of Trustees, effective
immediately. For 8 years, Ms. Duke has served as the Chief
Executive Officer of Fortis Properties Corporation. Prior to this,
she spent 16 years at Newfoundland Power, ultimately serving as the
company's vice-president of customer and corporate services. She
was named one of Atlantic Canada's
Top 50 CEOs from 2009-2013 by Atlantic Business Magazine. She was
also named one of Canada's 100
Most Powerful Women in 2010 by the Women's Executive Network. Ms.
Duke holds bachelor of commerce (hons.) and masters of business
administration degrees from Memorial
University.
About Slate Office REIT
Slate Office REIT is an open-ended real estate investment trust.
The REIT's portfolio currently comprises 49 strategic and
well-located real estate assets located primarily across
Canada's major population centres.
The REIT is focused on maximizing value through internal organic
rental and occupancy growth and strategic acquisitions. Visit
slateam.com/SOT to learn more.
About Slate
Slate Asset Management L.P. is a leading real estate investment
platform with $3 billion in assets
under management. Slate is a value-oriented company and a
significant sponsor of all its private and publicly-traded
investment vehicles, which are tailored to the unique goals and
objectives of its investors. The firm's careful and selective
investment approach creates long term value with an emphasis on
capital preservation and outsized returns. Slate is supported by
exceptional people, flexible capital and a proven ability to
originate and execute on a wide range of compelling investment
opportunities. Visit slateam.com to learn more.
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 REIT regarding, among other things, the
expected performance of the acquired properties. 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 and
various future events will not occur. Although management 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 REIT 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.
SOURCE Slate Office REIT