Fasken advised Scotiabank in connection with an acquisition financing of 3 Ottawa industrial properties by PROREIT.
PRO Real Estate Investment Trust (TSX: PRV.UN) closed its previously announced private placement of $50 million of trust units.
Pursuant to the Private Placement, 8,264,463 trust units of PROREIT were issued from treasury on a non-brokered private placement basis at a price of $6.05 per unit to Collingwood Investments Incorporated, a member of the Bragg Group of Companies, from Nova Scotia. As a result of the Private Placement, Collingwood Investments Incorporated, together with a related party, has a voting and economic interest of approximately 19.6% in PROREIT. Collingwood Investments Incorporated received a capital commitment fee equal to 3% of the gross proceeds of the Private Placement upon closing.
PROREIT intends to use the net proceeds from the Private Placement (i) to partially fund its proposed acquisition of a 100% interest in 12 industrial properties, including three properties in Ottawa, Ontario, representing 283,000 square feet of gross leasable area (“GLA”) and nine properties in Winnipeg, Manitoba, representing 288,000 square feet of GLA (collectively, the “Acquisitions”), for an aggregate purchase price of approximately $86.8 million (excluding closing costs), (ii) to repay certain indebtedness which may be subsequently redrawn, and (iii) the balance if any to fund future acquisitions and for general business and working capital purposes.
The Acquisitions are subject to customary closing conditions and are expected to close in the second quarter of 2021.
PROREIT is an unincorporated open-ended real estate investment trust established pursuant to a declaration of trust under the laws of the Province of Ontario.
The Fasken team comprised of Maria Holder (Picture) and Samita Smith.
Law Firms: Fasken Martineau;