Slate Office REIT Completes Acquisition of Three Office Properties and Conversion of Subscription Receipts
TORONTO, ON - Slate Office REIT (TSX:SOT.UN) (the "REIT"), a leading owner of office properties in Canada, is pleased to announce the closing of its previously announced acquisitions of three office properties located in the Greater Toronto Area and Fredericton, New Brunswick for an aggregate purchase price of $165 million (the "Acquisitions").
The Acquisitions were primarily funded with the net proceeds from the $120 million public offering of subscription receipts of the REIT ("Subscription Receipts") which closed on March 15, 2017 and a $10 million private placement of units of the REIT (each a "Unit") to the vendors of the Greater Toronto Area property which closed today.
The REIT has acquired West Metro Corporate Centre ("West Metro") in Etobicoke, Ontario and 250 King Street ("250 King") and 460 Two Nations Crossing ("460 Two Nations") in Fredericton, New Brunswick.
West Metro is a three-building complex located at 185, 191 and 195 The West Mall in Etobicoke, Ontario. The 616,364 sq. ft. complex is 93.0% occupied by several credit-quality tenants including SNC-Lavalin and The Bank of Nova Scotia. West Metro is a prominent property along the 427 Corridor and is highly visible with excellent transit access. West Metro is now the REIT's largest property and SNC-Lavalin is the REIT's largest tenant.
250 King is an 80,162 sq. ft. property built in 2000 which is located in downtown Fredericton. 460 Two Nations is a 50,945 sq. ft. property built in 2008 located in suburban Fredericton. Both properties are 100% occupied by the Province of New Brunswick, a AA rated credit. Together, these two properties provide a long-term government covenant and further strengthen the REIT's presence in Atlantic Canada.
As a result of the completion of the Acquisitions, each of the 14,820,000 outstanding Subscription Receipts will automatically be exchanged for one Unit and a cash distribution-equivalent payment of $0.0625 (being equal to the aggregate amount of distributions paid by the REIT per Unit for which record dates have occurred since the date of the underwriting agreement in respect of the Subscription Receipt offering), less any applicable withholding taxes. Trading of the Subscription Receipts has been halted on the Toronto Stock Exchange and the REIT expects that the Subscription Receipts will be delisted from the Toronto Stock Exchange after the close of markets today and that the Units issued in exchange for the Subscription Receipts will immediately commence trading on the Toronto Stock Exchange.
The REIT further expects that holders of Subscription Receipts will receive in the upcoming days the Units and the distribution equivalent payment to which they are entitled.
About Slate Office REIT (TSX:SOT.UN)
Slate Office REIT is an open-ended real estate investment trust. The REIT's portfolio currently comprises 38 strategic and well-located real estate assets located primarily across Canada's major population centres. The REIT is focused on maximizing value through internal organic rental and occupancy growth and strategic acquisitions. Visit slateofficereit.com to learn more.
About Slate Asset Management L.P.
Slate Asset Management L.P. ("Slate") is a leading real estate investment platform with approximately $4.0 billion in assets under management. Slate is a value-oriented manager and a significant sponsor of all of its private and publicly-traded investment vehicles, which are tailored to the unique goals and objectives of its investors. The firm's careful and selective investment approach creates long-term value with an emphasis on capital preservation and outsized returns. Slate is supported by exceptional people, flexible capital and a proven ability to originate and execute on a wide range of compelling investment opportunities. Visit slateam.com to learn more.
For Further Information
Slate Office REIT
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