2022-08-05 | TSX:PRV.UN | Press Release

MONTREAL, August 5, 2022 /CNW Telbec/ – PRO Real Estate Investment Trust (“PROREIT” or the “REIT”) (TSX: PRV.UN) today announced the successful completion of its previously announced joint venture agreement with Crestpoint Real Estate Investments Ltd. (“Crestpoint”) to jointly own an industrial-focused portfolio of 42 properties located in Atlantic Canadaincluding 41 properties in DartmouthHalifax Regional Municipality of Nova Scotiaand one property in Moncton, New Brunswick. The portfolio is comprised of nearly 3.1 million square feet of gross leasable area (GLA).

As part of the joint venture transaction, which is immediately accretive to earnings, PROREIT and Crestpoint each acquired a 50% interest in 21 primarily industrial properties currently owned by a third party, for a total purchase price of $228 million (before closing costs). In conjunction with the acquisition, PROREIT sold a 50% interest in 21 of its currently owned properties to Crestpoint, having a total value of $227 millionfor a total consideration to PROREIT of $113.5 million (before closing costs).

PROREIT, through its wholly owned property management business Compass Commercial Realty, acts as the sole property manager for the entire 42-property portfolio and collects industry standard fees.

PROREIT 50% Acquisition Interest

Property Address


(Square feet)

202 & 204 Brownlow Ave, Dartmouth, NS


201 Brownlow Ave and 50 Eileen Stubbs Ave, Dartmouth, NS


7 Mellor Ave, Dartmouth, NS


71 Thornhill Dr, Dartmouth, NS


131, 133 & 135 Ilsley Ave, Dartmouth, NS


121 Ilsley Ave, Dartmouth, NS


75 Akerley Blvd, Dartmouth, NS


100 Ilsley Ave, Dartmouth, NS


100 Wright Ave, Dartmouth, NS


51 Raddall Ave, Dartmouth, NS


170 Joseph Zatzman Dr, Dartmouth, NS


105 Akerley Blvd, Dartmouth, NS


50 Troop Ave, Dartmouth, NS


32 Troop Ave, Dartmouth, NS


81 Wright Ave, Dartmouth, NS


109 Ilsley Ave, Dartmouth, NS


95 Akerley Blvd, Dartmouth, NS


30 Simmonds Dr, Dartmouth, NS


50 Garland Ave, Dartmouth, NS


10 Thornhill Dr, Dartmouth, NS


16 Garland Ave, Dartmouth, NS




PROREIT’s acquisition in the 50% interest in the 21 properties amounted to a cost to PROREIT of approximately $114 million (excluding closing costs), financed from the proceeds of a 50% interest in approximately $148 million of new fixed-rate mortgages. The balance of approximately $40 million was satisfied with cash on hand, including cash from the proceeds of the sale of a 50% interest in existing properties to Crestpoint.

PROREIT 50% Interest Sale

Property Address


(Square Feet)

26-28 Topple Dr, Dartmouth, NS


320-340 Wright Ave, Dartmouth, NS


10 Morris Dr, Dartmouth, NS


222 Edinburgh Dr, Moncton, NB


11 Morris Dr, Dartmouth, NS


120 Troop Ave, Dartmouth, NS


55 Akerley Blvd, Dartmouth, NS


50 Akerley Blvd, Dartmouth, NS


10 Vidito Dr, Dartmouth, NS


101 Thornhill Dr, Dartmouth, NS


30-58 Mosher Dr, Dartmouth, NS


29-59 Mosher Dr, Dartmouth, NS


171 John Savage Ave, Dartmouth, NS


71 Ilsley Ave, Dartmouth, NS


101 Ilsley Ave, Dartmouth, NS


81 Ilsley Ave, Dartmouth, NS


58 Wright Ave, Dartmouth, NS


40 Thornhill Dr, Dartmouth, NS


50 Thornhill Dr, Dartmouth, NS


60 Thornhill Dr, Dartmouth, NS


45 Wright Ave, Dartmouth, NS




PROREIT’s sale of a 50% interest in 21 of its currently owned properties resulted in a consideration of approximately $49 million in cash received from Crestpoint (before closing costs), with Crestpoint also assuming a 50% interest in approximately $129 million of fixed-rate mortgages currently held by PROREIT.

The balance of the proceeds to PROREIT, net of the acquisition payment, will be used to reduce the REIT’s credit facility.


PROREIT (TSX: PRV.UN) is an unincorporated open-ended real estate investment trust established pursuant to a declaration of trust under the laws of the Province of Ontario. Founded in 2013, PROREIT owns a portfolio of high-quality commercial real estate properties in Canadawith a strong industrial focus in robust secondary markets.

About Crestpoint

Crestpoint Real Estate Investments Ltd. is a commercial real estate and mortgage investment manager dedicated to providing investors with direct access to a diversified portfolio of commercial real estate assets. Crestpoint’s current portfolio has a market value in excess of $8.5 billion and is comprised of over 31 million square feet of commercial properties. Crestpoint is part of the Connor, Clark & ​​Lunn Financial Group, a multiboutique asset management company that provides investment management products and services to institutional and high net-worth clients. With offices across Canada and in Chicago, Londonand Gurugram, IndiaConnor, Clark & ​​Lunn Financial Group and its affiliates are collectively responsible for the management of approximately $104 billion in assets. For more information, please visit: www.crestpoint.ca.

Forward-Looking Statements

This press release contains forward looking statements and forward-looking information (collectively, “forward-looking statements”) within the meaning of applicable securities legislation, including statements relating to certain expectations, projections, plans and other information related to REIT’s business strategy and future plans. Forward-looking statements are based on a number of assumptions and are subject to a number of risks and uncertainties, many of which are beyond PROREIT’s control, that could cause actual results and events to differ materially from those that are disclosed in or implied by such forward-looking statements.

Forward-looking statements contained in this press release include, without limitation, statements pertaining to the expected performance of the transaction and its future impact on PROREIT’s results. PROREIT’s objectives and forward-looking statements are based on certain assumptions, including that (i) PROREIT will receive financing on favorable terms; (ii) the future level of indebtedness of PROREIT and its future growth potential will remain consistent with the REIT’s current expectations; (iii) there will be no changes to tax laws adversely affecting PROREIT’s financing capacity or operations; (iv) the impact of the current economic climate and the current global financial conditions on PROREIT’s operations, including its financing capacity and asset value, will remain consistent with PROREIT’s current expectations; (v) the performance of PROREIT’s investments in Canada will proceed on a basis consistent with PROREIT’s current expectations; and (vi) capital markets will provide PROREIT with readily available access to equity and/or debt.

The forward-looking statements contained in this news release are expressly qualified in their entirety by this cautionary statement. All forward-looking statements in this press release are made as of the date of this press release. PROREIT does not undertake to update any such forward-looking information whether as a result of new information, future events or otherwise, except as required by law.

Additional information about these assumptions and risks and uncertainties is contained under “Risk Factors” in PROREIT’s latest annual information form and “Risk and Uncertainties” in PROREIT’s management’s discussion and analysis for the year ended December 31, 2021which are available under PROREIT’s profile on SEDAR at www.sedar.com.


Cision View original content: http://www.newswire.ca/en/releases/archive/August2022/05/c7443.html


Leave a Reply

Your email address will not be published.

Back to top button