On Monday, April 15th, 2013, Skyline Commercial REIT purchased the remaining properties included in the second phase of its $242 million commercial portfolio acquisition. The close of these properties marks the largest acquisition in Skyline's history, and brings Skyline Apartment REIT and Skyline Commercial REIT's combined holdings to over $1 billion.
The commercial portfolio is comprised of 29 properties primarily located in the GTA (Phase 1) and 17 properties in the city of Ottawa (Phase 2). It is made up of nearly 2.4 million square feet of commercial space, spanning across nine Ontario cities.
Phase 1 was fully acquired in October 2012; the collection of GTA properties had a $120 million purchase price, and properties spanned across the cities of Mississauga, Vaughan, Brampton, Etobicoke, Barrie, Newmarket, North York and Orillia. The Phase 2 Ottawa properties were acquired in two clusters as the equity was raised to close each deal.
"This acquisition is a milestone in many ways for Skyline and its group of companies," says Jason Castellan, Skyline's Co-Founder and CEO. "With this $240 million Commercial REIT acquisition, we have well surpassed $1.1 billion worth of real estate assets, and close to $500 million of investor equity under management. With the continued support from our investors and our desire to drive efficiency and value, we will make the most out of the real estate we have now, while seeking new opportunities through acquisitions."
Post-acquisition, Skyline Commercial REIT now comprises 52 properties across 12 Ontario communities, and approximately 2.6 million square feet of commercial space. The total internally appraised IFRS value of the Skyline Commercial REIT is approximately $272.75 million. Further, Skyline Commercial REIT now has over 431 tenants, with no single tenant representing greater than 1.8% of the REIT's gross revenue, adding to the REIT's multi-tenant diversification and stability model made up of mostly light industrial and office space.