C2C Industrial Properties Inc. Enhances GTA Presence With Acquisition
TORONTO, ONTARIO--(Marketwire - Nov. 2, 2012) - C2C Industrial Properties Inc. ("C2C" or the "Company") (TSX VENTURE:CCH) announced today that it has completed the acquisition of a property containing two well-maintained light industrial buildings aggregating approximately 82,000 square feet of gross leaseable area ("GLA") in Brampton, Ontario close to major highways and Pearson International Airport. The two buildings are 100% leased. The Company paid approximately $8.8 million for the property, including all due diligence and closing costs, satisfied by a new $5.25 million five-year mortgage bearing an interest rate of 3.75%, the issuance of 100,000 common shares of the Company to the vendor at a deemed value of $5.00 per share, equal to $0.5 million, with the balance in cash. The property was acquired at a going-in capitalization rate of approximately 7.5%.
Of the 100,000 common shares of the Company issued to the vendor, 20,000 were delivered on closing and the remaining 80,000 were delivered to an escrow agent to be held as security for the performance of the tenant of one of the buildings. The escrowed shares, subject to the security arrangements, will be released to the vendor on the basis of 1/4 of the shares on the first anniversary of the closing date, and the remaining 3/4 of the shares approximately 5 years from closing. These common shares will be subject to a four month hold period expiring March 3, 2013, in accordance with the policies of the TSX Venture Exchange Inc.
"We are pleased to be purchasing this property and enhancing our presence in the strong and growing Greater Toronto Area market," commented Chris Ross, President. "The transaction fits very well with our focus on a three-part strategic growth plan: to acquire properties with high initial capitalization rates, or purchases where we believe we can add incremental value over time through our active asset and property management programs or our proven development and re-development expertise."
About C2C Industrial Properties Inc.
C2C is a real estate investment corporation specializing in the acquisition, ownership and operation of light industrial properties across Canada. C2C currently owns 22 industrial properties totalling approximately 2.0 million square feet of gross leaseable area. More information about C2C (TSX VENTURE:CCH) is available at www.c2cip.com.
Forward Looking Statements
This document contains forward-looking statements relating to C2C and the industry in which it operates and its strategy, action plans and investments, which may involve estimates, forecasts and projections. These statements are not guarantees of future performance and involve risks and uncertainties that are difficult to predict and/or are beyond C2C's control. Consequently, readers should not place any undue reliance on such forward-looking statements. These forward-looking statements are made as of the date of this press release. C2C is under no obligation to update any forward-looking statements contained herein should material facts change due to new information, future events or other factors, unless otherwise required to do so by applicable law. All forward-looking statements attributable to C2C are expressly qualified by these cautionary statements.
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C2C Industrial Properties Inc.