True North Commercial Real Estate Investment Trust (the REIT) said it plans to purchase two office properties in Mississauga, Ontario.
First, the REIT is buying a two-storey property located at 6865 Century Avenue for $13.4 million. Situated on 2.66 acres with about 64,000 rentable square feet and 226 surface parking stalls, the building has excellent access to Highways 401 and 403. Upgrades to the well maintained property include the exterior façade, windows, paving, elevator, washrooms and building HVAC systems. With an average lease term of 5.1 years remaining, the property is 100 per cent occupied.
The REIT has also entered into a non-binding letter of intent to acquire a 40,000-square-foot office building that is 100 per cent occupied and also located in Mississauga, near access to Highways 401, 427 and 409.
The REIT intends to complete a $9.25 million Private Placement to fund the cash portion of the two transactions.
“The acquisition of the Century Property, together with the potential addition of the Mississauga Property, allows us to increase the REIT’s presence in the attractive Greater Toronto Area ,” said Daniel Drimmer, president and chief executive officer of the REIT. “With the funds raised through the Private Placement, the REIT will continue to execute on our core strategy of acquiring high quality buildings, predominately tenanted with credited-rated organizations.”