Tuesday, November 15, 2016
FOR IMMEDIATE RELEASE                                                          November 15, 2016
 
Pure Industrial Real Estate Trust (TSX: AAR.UN) (“PIRET” or the “Trust”) announced today that it has closed the acquisition previously announced on October 3, 2016, and acquired a portfolio of six properties located in the Southeast U.S. from STAG Industrial Inc. (the “U.S. Acquisition”) for a purchase price of approximately $109.8 million (US$81.0 million), representing a going-in capitalization rate of approximately 6.9%. The US Acquisition comprises approximately 1.6 million square feet of GLA and consists of four assets located in Atlanta, Georgia and two assets located in Charlotte, North Carolina. The U.S. Acquisition was financed with a new mortgage in the amount of approximately $54.9 million (US$40.5 million) with an eight-year term and fixed interest rate of 3.06% per annum, and proceeds from the Trust’s equity offering for total gross proceeds of $143.8 million which closed on October 13, 2016.
 
Key highlights of the U.S. Acquisition include:
  • An opportunity to acquire critical mass in two of the Southeast U.S.’s most established and fastest growing markets, Atlanta and Charlotte, two markets that PIRET has targeted for expansion;
  • 100% leased to seven tenants with a weighted average lease term of 4.5 years;
  • High quality, functional warehouse/distribution facilities with an average clear height of 30 feet;
  • All buildings are well-situated in their respective business parks and are within close proximity to major interstate highways and airports;
  • High quality tenant base with an average tenure of 11 years at the properties; and
  • The U.S. Acquisition will increase PIRET’s investment in the U.S. to 19 properties comprising approximately 4.6 million square feet of GLA, and will increase its Southeast U.S. holdings to
  • 10 properties comprising approximately 3.0 million square feet of GLA.

Property Address

Market

Tenants

GLA

3755 Atlanta Industrial Parkway

Atlanta

Empire Distributors Inc.

407,981

2107 Eastview Parkway

Atlanta
(Conyers)

Panolam Surface Systems

Cellofoam North America Inc.

110,203

91,200

2175 East Park Drive

Atlanta
(Conyers)

Diversitech Corporation

226,256

1975 Sarasota Parkway

Atlanta
(Conyers)

Pratt Industries Inc.

145,262

3700 Display Drive

Charlotte

International Paper Company

465,323

4205 Westinghouse Commons

Charlotte

Chemring Detection Systems, Inc.

123,333

Total

1,569,558

 
2107 Eastview Parkway 2175 East Park Drive
3700 Display Drive 1975 Sarasota Parkway
3755 Atlanta Industrial Parkway 4205 Westinghouse Commons
Kevan Gorrie, President and Chief Executive Officer, commented, “PIRET remains focused on executing its plan to build an industry-leading portfolio of modern distribution properties in key Industrial markets in Canada and the U.S. The Atlanta and Charlotte properties are well situated in U.S. industrial markets with strong long-term growth prospects. We believe in the continued strength of the U.S. economy, and specifically the anticipated demand for larger, high quality distribution facilities in the Southeast U.S. This acquisition fits perfectly with our plans to expand our portfolio in select growth markets in the U.S.”
 

About Pure Industrial Real Estate Trust

PIRET is an unincorporated, open-ended investment trust that owns and operates a diversified portfolio of income-producing industrial properties in leading markets. PIRET is an internally managed REIT that focuses exclusively on investing in industrial properties.
 
Additional information about PIRET is available at www.piret.ca or www.sedar.com.
 
For more information please contact:
 
Andrew Greig,
Director of Investor Relations
 
Pure Industrial Real Estate Trust
Suite 910, 925 West Georgia Street
Vancouver, BC V6C 3L2
Phone:  (604) 681-5959 or (888) 681-5959
E-mail:  agreig@piret.ca
 
Toronto Stock Exchange – AAR.UN
 
Forward-Looking Information:
 
Certain statements contained in this news release may constitute forward-looking statements. Forward-looking statements are often, but not always, identified by the use of words such as "anticipate", "plan", "expect", "may", "will", "intend", "should", and similar expressions. These statements involve known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such forward-looking statements.
 
Although PIRET believes that the expectations and assumptions on which the forward-looking statements are based are reasonable, undue reliance should not be placed on the forward-looking statements because PIRET can give no assurance that they will prove to be correct. Since forward-looking statements address future events and conditions, by their very nature they involve inherent risks and uncertainties. Actual results could differ materially from those currently anticipated due to a number of factors and risks. These include, but are not limited to, competitive factors in the industries in which PIRET operates, prevailing economic conditions, and other factors, many of which are beyond the control of the PIRET.
 
The forward-looking statements contained in this news release represent PIRET’s expectations as of the date hereof, and are subject to change after such date. PIRET disclaims any intention or obligation to update or revise any forward-looking statements whether as a result of new information, future events or otherwise, except as required under applicable securities regulations.
 
THE TORONTO STOCK EXCHANGE HAS NOT REVIEWED AND DOES NOT ACCEPT RESPONSIBILITY FOR THE ADEQUACY OR THE ACCURACY OF THIS RELEASE.