PRO Real Estate Investment Trust, a Montreal-based real estate investment trust, has closed a private placement financing, securing C$50 million. The investor was Collingwood Investments, part of Bragg Group of Companies. PROREIT will use the funds raised for a proposed acquisition of 12 Canadian industrial properties and other priorities.
MONTRÉAL, QC, April 14, 2021 /CNW Telbec/ – PRO Real Estate Investment Trust (TSX: PRV.UN) (“PROREIT” or the “REIT”) is pleased to announce the closing of its previously announced private placement of $50 million of trust units (the “Private Placement”).
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. For more information on the Acquisitions and the intended use of the net proceeds from the Private Placement, please refer to the March 15, 2021 press release of PROREIT.
About PRO Real Estate Investment Trust
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. PROREIT was established in March 2013 to own a portfolio of diversified commercial real estate properties in Canada, with a focus on primary and secondary markets in Québec, Atlantic Canada and Ontario with selective expansion into Western Canada. PROREIT’s portfolio is diversified by property type and geography.
For more information on PROREIT, please visit the website at: https://proreit.com.