MONTREAL, April 15, 2016 /CNW Telbec/ - (TSXV: NEL.UN)
Nobel Real Estate Investment Trust ("Nobel REIT" or the
"REIT") is pleased to announce that it has completed the
acquisition of 50% of the units of Société en commandite 2045
Stanley (the "2045 Stanley LP"), the limited
partnership that owns the office building located at 2039-2047
Stanley in Downtown Montreal, as
well as 50% of the shares of 9301-6897 Québec Inc., the general
partner of 2045 Stanley LP; the other half of the units and shares
are owned by Fiducie Notariale Immobilière (which translates into
Notarial Real Estate Trust).
The 2039-2047 Stanley property is a Downtown Montreal office building, comprising
110,398 square feet of gross leasable area, located on a 9,643
square feet land next to the Peel metro station and the access of
the Underground City; the current occupancy rate is 97% and the
main tenant is Manulife, which occupies almost all of the building
and which will leave by December 31,
2016. After Manulife's departure, the property will be
redeveloped and the Chambre des notaires du Québec will occupy
about 40% of the gross leasable area starting December 2017; Nobel REIT will move its head
office there as soon as possible to plan and manage the
redevelopment work.
The value of this property is over $25,500,000; the purchase price of the units and
shares by Nobel is of approximately $5,000,000, excluding acquisition costs, taking
into account existing debts and working capital required for the
redevelopment work; the definitive purchase price will be
established within 60 days.
This transaction is funded with part of the proceeds from the
$6,300,000 temporary loan from an
arms' length party, Timbercreek Mortgage Servicing Inc., which was
obtained yesterday by the REIT; this second charge mortgage, of a
six-month term, is guaranteed by certain properties of the REIT,
along with a pledge of the Class A Nobel REIT Limited Partnership
units owned by Nobel Real Estate Investment Trust.
According to Jean Teasdale,
President and CEO of Nobel REIT, "The REIT completes today another
stage of its growth plan, by setting foot in downtown Montreal. We expect an occupancy rate above
80% for this building by the end of 2018, a rate comparable to
other rental properties in the area."
For its part, Jean Lambert,
Trustee of the Fiducie Notariale Immobilière said "The Fiducie
Notariale Immobilière is pleased to partner with Nobel REIT for the
ownership and management of the 2039-2047 Stanley property; the
REIT's experienced management team is a reassuring presence for
us."
About Nobel REIT
Nobel REIT is an unincorporated open-ended real estate
investment trust governed by the laws of the Province of Québec.
Nobel REIT has been created for the purpose of acquiring and owning
income producing properties. The REIT focuses on acquiring
commercial retail, mixed-used retail, industrial and office
properties in the primary markets in the Province of Québec and
Canada. Nobel REIT currently owns,
in whole or in part, sixteen properties located in Québec,
comprising 763,729 square feet of gross leasable area.
About 2045 Stanley LP
The 2045 Stanley LP is an entity that was created in order to
acquire and operate the office building located at 2039-2047
Stanley in Downtown Montreal.
About Fiducie Notariale Immobilière
Fiducie Notariale Immobilière was created in order to act as a
special partner of 2045 Stanley LP.
About Chambre des notaires du Québec
The Chambre des notaires du Québec is the professional
order of more than 3,900 notaries. Its main mission is to ensure
the protection of the public using its members' services. In this
perspective, the Chambre collaborates, through its interventions,
so that the values on which is founded the Quebec legal system are conveyed or protected,
namely, equality, equity and individual and collective
responsibilities.
Disclaimer – Safe Harbour Forward–Looking Statements
Forward-looking statements contained in this press release
involve known and unknown risks, uncertainties and other factors
that may cause actual results, performance and achievements of
Nobel REIT to be materially different from any future results,
performance or achievements expressed or implied by the said
forward-looking statements.
Neither TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in policies of the TSX Venture
Exchange) accepts responsibility for the adequacy or accuracy of
this release.
SOURCE Nobel Real Estate Investment Trust