A leading commercial real estate investment trust has just announced a $70-million equity offering, along with two high-tier acquisitions in the Greater Toronto Area.
True North Commercial REIT confirmed that it has cemented a sales agreement with a syndicate of underwriters led by CIBC Capital Markets and Raymond James Ltd.
The underwriters will “sell, on a bought deal basis, 10,120,000 trust units of the REIT at a price of $6.92 per Unit for gross proceeds to the REIT of approximately $70 million.”
Said transaction is slated to close on or about November 18, 2019. “The REIT has also granted the Underwriters an option, exercisable for a period of 30 days following the closing of the Offering, to purchase up to an additional 1,518,000 Units at the Offering Price for additional gross proceeds of approximately $10.5 million, to cover over-allotments, if any.”
Meanwhile, the GTA purchases involve two Class “A” office properties, measuring 368,800 sq. ft. and 252,500 sq. ft.
The assets’ combined purchase price will be approximately $205.3 million, with a combined occupancy of 98.6%. Credit-rated tenants would account for 46.8% of revenue generated.
“Upon the successful closing of the acquisition of the Potential Acquisition Properties, the REIT’s portfolio will have 4.8 million leasable square feet, be 97% occupied, have a weighted average lease term of 4.7 years and 76.7% of its revenue generated by government and/or credit-rated tenants.”