Partners Real Estate Investment Trust announced today that it would be acquiring the Evergreen Shopping Centre, a five building 88,200 square foot open-air shopping centre located in Sooke, approximately 37 kilometers west of Victoria.
Anchored by a Western Foods grocery store, a newly-constructed Shoppers Drug Mart, a BC Liquor outlet and a Royal Bank branch, the property is currently 96.2 per cent occupied. The property currently generates Net Operating Income of approximately $1.2 million on an annualized basis and management expects it will generate approximately $400,000 in incremental annualized Funds From Operations.
The purchase price of the property is approximately $15.8 million, subject to final adjustments and acquisition costs. The aggregate outlay of funds will be covered by the placement of a $10.5 million mortgage bearing interest at a rate slightly below four per cent. The balance of the purchase price will be in cash from a recently funded new secondary loan bearing interest at seven per cent and the REIT’s lines of credit. The closing of the transaction is expected on or before August 31, 2011.
Sooke is an attractive, high-end residential community and tourist centre within easy commuting distance of Victoria. The town has been growing over the last decade and has a number of new residential developments underway.
“We are pleased to be extending our presence in the British Columbia market with this acquisition,” commented Adam Gant, Chief Executive Officer. “The purchase is consistent with our stated strategy to strengthen, expand and further diversify our portfolio by acquiring well-positioned community and neighbourhood properties in growth markets with consistent strong cash flows derived from tenants that provide necessity-based products and services.”
Partners REIT is a growth-oriented real estate investment trust, which currently owns (directly or indirectly) 18 retail properties across Canada. Partners REIT focuses on expanding and managing a portfolio of retail and mixed-use community and neighbourhood shopping centres located in both primary and secondary markets across Canada.