(To read more on the industrial market, click here.)
WINNIPEG, MANITOBA-Huntingdon Real Estate Investment Trust is acquiring three recently completed industrial properties totaling 94,960 sf for $19.6 million. The purchase is a sale-leaseback transaction with Leader Energy Services Ltd.; the properties house its western Canadian oilfield services facilities.
Per the acquisition agreement, Leader will enter into a 20-year, triple net lease with rent increases every five years. The purchase price represents an implied 10.57% capitalization rate, based on year-one net operating income.
To complete the deal, HREIT has obtained a commitment for first mortgage financing in the amount of $13.97 million. The loan would have a five-year term and would bear interest at 5.63%. The balance of the purchase price would be paid in cash. The acquisition is scheduled to close during March 2007.
The properties are 7001 96th St. in Grande Prairie, a 28,280-sf industrial building and a 5,000-sf secondary building on a 14.77-acre site; 4080 77 St. in Red Deer, an identically sized development on an 11.76-acre site, and; 35 Martin Way in Brooks, a 23,400-sf industrial building and a 5,000 sf secondary building on a 7.41-acre site.
Want to continue reading?
Become a Free ALM Digital Reader.
Once you are an ALM Digital Member, you’ll receive:
- Breaking commercial real estate news and analysis, on-site and via our newsletters and custom alerts
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical coverage of the property casualty insurance and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor
Already have an account? Sign In Now
*May exclude premium content© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
