|380 Hunt Club Road, Ottawa, ON|
Guelph, ON (Jan 23, 2013) - The second phase of Skyline Commercial REIT’s $242 million commercial purchase is already underway. On January 18th, the Commercial REIT purchased the following properties in the Ottawa, ON area:
Collectively, the four properties offer 207,037 square feet of commercial space and bring the Commercial REIT into a new city, further adding to the portfolio’s incredible geographic diversification model.
Post-acquisition, the Skyline Commercial REIT now comprises 42 properties across 12 Ontario communities, and approximately 1,909,529 square feet of commercial space. The total internally appraised IFRS value of the Skyline Commercial REIT is approximately $174.42 million.
Although it was originally anticipated that Phase 2 (the Ottawa portfolio) of the ongoing Commercial REIT acquisition would occur in one transaction, similarly to the Phase 1 (Toronto & area portfolio) acquisition in November of 2012, instead, the properties will be acquired in clusters as the necessary amount of equity is raised to close each deal.
“Due to the success of the first closing of the Phase 1 GTA assets last November, we were able to negotiate the opportunity to begin to close the Phase 2 Ottawa assets earlier than scheduled,” says Jason Castellan, CEO and Co-Founder of the Skyline Group of Companies. “We requested this strategy in order to put the available capital to work sooner rather than later. Our investors’ strong interest in this REIT has afforded us this opportunity, and we will continue to raise the remaining funds to close out the last part of the Ottawa portfolio. Our strategy to close in clusters demonstrates our investors’ confidence in a well-diversified asset class that has tremendous room for growth.”
In November 2012, Skyline Commercial REIT set a company record with its largest-ever acquisition: a $120 million commercial portfolio consisting of properties across the GTA. This acquisition was the first phase of the Commercial REIT’s $242 million commercial purchase. Now, Skyline Commercial REIT will be bringing in its Phase 2 properties to complete the full transaction over the next couple of months.
The completion of Phase 2 in March 2013 will bring the Skyline Group of Companies’ combined holdings to over $1 billion, and will also result in Skyline Commercial REIT’s growing 10 times its size prior to the two-phase acquisition. Additionally, Skyline Commercial REIT will have over 430 individual tenants, supporting the REIT’s unique multi-tenant model, made up of mostly light industrial and office space. Further to this, no single tenant will represent greater than 1.8% of the REIT’s gross revenue.