Fronsac Real Estate Investment Trust: Acquisition of Soginci Inc.
(firmenpresse) - MONTREAL, QUEBEC -- (Marketwired) -- 05/07/15 -- (TSX VENTURE: GAZ.UN) Fronsac Real Estate Investment Trust ("Fronsac REIT" or "Fronsac") announces today the closing, by 9315-5125 Quebec Inc., a subsidiary of the Trust, of all of the outstanding and shares in circulation of Soginci Inc., a management company which holds five real estate properties. Over the course of their last fiscal period, triple net rental revenues from these five properties amounted to $450,000. This arms length transaction, for an amount of 7.1M$ (excl. transaction costs), was paid for in cash at closing. A mortgage in the amount of $4.5M was obtained from a Chartered Canadian bank in order to help finance the transaction. The properties held by Soginci Inc. are situated in St-Julie (4) and in St-Mathieu-de-Beloeil (1), alongside highway 20, and are fully occupied. These five properties are made up of land totalling approximately 222,000 square feet, on which the tenants, in four cases, have themselves erected a building. Ownership of the buildings in these 4 cases will transfer to Soginci Inc. at the end of the leases. The land is leased to National oil/gas companies (3) and National restaurant chains (2), all under medium to long-term leases.
This acquisition, our most important to date, has permitted the Trust to considerably increase the total value of our real estate portfolio to 17 properties. The purchase solidifies Fronsac''s presence in the market of highway sites, which encompass both gas and fast food restaurants.
A commission of $30,000 was paid, in equal parts between the seller and 9315, to a real estate agent.
About Fronsac - Fronsac Real Estate Investment Trust is an open-ended trust that acquires and owns high quality commercial real estate properties situated along highways or frequently travelled routes, rented to strong tenants under long term, management free and net leases. These properties are occupied by tenants within the following sectors; (1) Fast food chains, (2) Major oil/gas companies and (3) Convenience store chains.
Forward-Looking Statements - This press release contains forward-looking statements and information as defined by applicable securities laws. Fronsac warns the reader that actual events may differ materially from current expectations due to known and unknown risks, uncertainties and other factors that could cause actual results to differ materially from the results anticipated in such statements. Among these include the risks related to economic conditions, the risks associated with the local real estate market, the dependence to the financial condition of tenants, the uncertainties related to real estate activities, the changes in interest rates, the availability of financing in the form of debt or equity, the effects related to the adoption of new standards, as well as other risks and factors described from time to time in the documents filed by Fronsac with securities regulators, including the management report. Fronsac does not update or modify its forward-looking statements even if future events occur or for any other reason, unless required by law or any regulatory authority.
Neither the TSX Venture Exchange Inc., nor its Regulatory Services Provider (as that term is defined in the Policy of the TSX Venture Exchange) accepts any responsibility for the adequacy or accuracy of this release.
Contacts:
Michel Lassonde
President
(450) 536-5328
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Datum: 07.05.2015 - 17:59 Uhr
Sprache: Deutsch
News-ID 1357388
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