Alexis Nihon REIT Announces $24.5 Million Acquisition of Office Property in Ottawa.MONTREAL -- REIT REIT See: Real Estate Investment Trust REIT See real estate investment trust (REIT). makes third acquisition in National Capital Region Alexis Nihon Alexis Louis Nihon, O.B.E. (May 15 1902 – April 8 1980) was a Belgium born Canadian inventor and businessman. He was the inventor of the tubeless tire. Born in Liège, Belgium, the son of Alexis Laurent Nihon and Marie Florentine Thiry, he moved to Canada when he was 18. REIT (TSX TSX Toronto Stock Exchange (TSE before April, 2002) TSX Transfer from Stack Pointer to Index TSX True Space Extension :AN.UN) today announced the acquisition of an office property in downtown Ottawa Downtown Ottawa (French: Centre-Ville) is the central area of Ottawa, Canada. Like other downtowns it is the commercial and economic centre of the city. It is bordered by the Ottawa River to the north, the Rideau Canal to the east, Somerset Street to the south and Bronson . The acquisition price of $24.5 million represents a going-in capitalization rate Capitalization Rate According to the Appraisal Institute, it is a method used to convert an estimate of a single year's income expectancy into an indication of value in one direct step, by dividing the income estimate by an appropriate rate. of approximately 9.7%. "Since we acquired our initial two office properties in Gatineau in 2004, we have been actively seeking to expand our presence in the National Capital Region," said Paul J. Massicotte, President and CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. . "This acquisition achieves that objective, while diversifying outside of Quebec for the first time and establishing a presence for further expansion." "The purchase price is accretive to unitholders at the time of acquisition, and we expect the property's cash flow contribution to rise as leases are renewed in the future," said Rene Fortin, Senior Vice-President and Chief Financial Officer. "This is a quality property with stable, long-term tenants and represents excellent value to the REIT." The leasable area of the property totals 174,000 square feet, representing an acquisition price of $141 per square foot. The ground floor consists of office and retail space comprising 15% of leasable area. Upper floors account for 85% of the total and house Class B office space. Three floors and an exterior parking lot provide 326 spaces for tenants' vehicles. The property, which is 96% occupied, was built in 1974 and renovated in 1998 to accommodate government tenancies. Federal departments and agencies account for 72% of space, provincial health care facilities occupy 16%, and Ottawa Police Service The Ottawa Police Service (OPS) (Service de police d'Ottawa in French) serves the City of Ottawa, Ontario, Canada. History The service celebrated its 150th anniversary in 2005. and retail shops account for the remainder. The weighted average term of leases in place is 4.7 years. The property is in the Centretown district of downtown Ottawa. Its location at the corner of Cooper Street and Bank Street is approximately midway between the Parliament Buildings Parliament Buildings may refer to:
Parliament Buildings can refer to the following places: The addition increases the office segment of the portfolio by 6.1% to 2,986,741 square feet. Following the acquisition, asset allocation Asset Allocation The process of dividing a portfolio among major asset categories such as bonds, stocks or cash. The purpose of asset allocation is to reduce risk by diversifying the portfolio. within the REIT's portfolio consists of the following:
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Asset class No. of properties Square footage Per cent of total
(millions)
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Industrial 31 3.71 44.0%
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Office 20 2.99 35.4%
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Retail 4 1.47 17.0%
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Residential(a) 0 0.30 3.6%
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(a)Residential apartments are located in Place Alexis Nihon, classed
as an office property.
The purchase price, less $18.8 million in an assumed mortgages, will be funded by the REIT's credit facilities credit facilities npl → facilidades fpl de crédito credit facilities npl → facilités fpl de paiement credit facilities . The blended interest rate on the mortgages is approximately 5.50%. About Alexis Nihon REIT The REIT currently owns interests in 55 office, retail, and industrial properties, including a 426-unit multi-family residential property, all located in the greater Montreal area and the National Capital region. The REIT's portfolio has an aggregate of 8.4 million square feet of leasable area, of which 0.4 million square feet is co-owned. Alexis Nihon Real Estate Investment Trust (TSX:AN.UN) |
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