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BTB Announces It Has Waved Conditions for the Acquisition of 9 High-Quality Industrial Properties and 1 Office Property in Western Canada for $94 Million

BTB Announces It Has Waved Conditions for the Acquisition of 9 High-Quality Industrial Properties and 1 Office Property in Western Canada for $94 Million

  • The portfolio to be acquired is composed of 9 industrial properties containing 406,818 square feet of gross leasable area (“GLA”) and 1 office property with a GLA of 14,475 square feet;
  • This acquisition will be immediately accretive to BTB’s Funds From Operations per unit (“FFO”);
  • The properties are 100% occupied with reputable national clients, operating in diverse industries;
  • The net proceeds of the $26 million disposition of the Cornwall properties (the “Cornwall Portfolio” or the “Disposition”) will be used to partially fund the acquisition;
  • Post transactions, BTB’s portfolio will be composed of 71 properties, representing 6 million square feet of GLA.

Montréal (Québec) December 22nd, 2021: BTB Real Estate Investment Trust (TSX: BTB.UN) (“BTB” or the “REIT”) announces that it has concluded the acquisition of 9 high-quality industrial properties and 1 office property located in Edmonton, Alberta and in Saskatoon, Saskatchewan for an aggregate purchase price of $94 million excluding transaction costs (the “Western Canada Portfolio”, the “Portfolio” or the “Acquisition”). This Acquisition enables BTB to further increase its exposure to the industrial sector whilst also enabling the REIT to broaden its geographic presence within Canada, in a disciplined manner. This Acquisition is a first for BTB in Western Canada and is scheduled to be concluded in December 2021.

Concurrent with the Acquisition, BTB also announces that conditions were waived for the sale of its Cornwall Portfolio for a total consideration of $26 million, excluding transaction costs. Following the reimbursement of its mortgages on the properties, BTB will receive net proceeds of approximately $19 million, which will be partially used to fund the purchase price of the Acquisition. The disposition of the Cornwall Portfolio is expected to close in January 2022.

ABOUT THE WESTERN CANADA PORTFOLIO

 The Western Canada Portfolio houses reputable national tenants operating in various industries such as agricultural machinery, automotive, dairy, energy, and industrial equipment just to name a few. The Western Canada Portfolio is 100% occupied with modern facilities, mostly built in the last decade. The Western Canada Portfolio will be acquired with an in-place cap rate of 6.90% or 6.46% on a stabilized basis

WESTERN CANADA PORTFOLIO

  Property addresses GLA(1) Year(2) Type Main tenants (Industry)
         
1 6909,42nd Street,
Leduc, AB
24,014 2014 Industrial Ameco Services Inc. (Equipment)
2 18410,118A Avenue NW,
Edmonton, AB
30,297 2011 Industrial Drive Products Inc.

(Equipment)

3 18028,114 Avenue NW,
Edmonton, AB
55,849 1998 Industrial EPCOR Water Services Inc.

(Energy)

4 28765, Acheson Road,
Acheson, AB
36,334 2015 Industrial NCSG Crane (Machinery)
5 25616, 117 Avenue NW,
Acheson, AB
37,143 2012 Industrial Strongco LP(3)(Construction)
6 3542 Millar Avenue,
Saskatoon, SK
28,800 2009 Industrial Vicwest Inc. (Manufacturing)
7 318, 68th Street,
Saskatoon, SK
101,150 2016 Industrial National Tire Distributors Inc. (Automotive)
8 3911 Millar Avenue,
Saskatoon, SK
26,400 2010 Industrial Wesco Distribution Canada LP (Distribution)
9 3927 & 3931 Wanuskewin Rd, Saskatoon, SK 66,831 2011

2013

Industrial CNH Industrial Canada (Capital Goods)

Saputo Dairy Products Canada (Dairy)

10 1921, 91st Street SW,
Edmonton, AB
14,475 2012 Office Maple Reinders Constructors Ltd. (Industrial Equipment)
Total Western Canada Portfolio GLA 421,293

 FINANCING THE ACQUISTION

The purchase price for the Western Canada Portfolio will be financed by:

Mortgages: mortgages totalling $62 million;
Net Proceeds Cornwall Disposition:  approximately $19 million to be received from the Cornwall Disposition;
Cash: available cash on hand;
Credit facility: existing undrawn capacity on BTB’s credit facility.

CORNWALL PORTFOLIO DISPOSITION

BTB’s Cornwall Portfolio is composed of 4 properties located in Cornwall, Ontario. The sale price of approximately $26 million exceeds the properties fair value reported in Q3 2021 by 18% as reported in Q3 2021 of $21 million and exceeds by 73% the original purchase price of $15 million . The closing is scheduled in January 2022. The Disposition includes the sale of the following properties:

CORNWALL PORTFOLIO

  Property addresses GLA (4) Year(5)
       
1 705, Boundary Road, Cornwall, ON 144,409 1970’s
2 725, Boundary Road, Cornwall, ON 171,344 1970’s
3 805, Boundary Road, Cornwall, ON 107,023 1970’s
4 2901, Marleau Avenue, Cornwall, ON 28,000 1983-86-2002
 
Total Cornwall Portfolio GLA 450,776

ABOUT BTB

BTB is a real estate investment trust listed on the Toronto Stock Exchange. BTB is an important owner of properties in eastern Canada. Considering these transactions, BTB will own 71 properties, representing a total leasable area of approximately 5.6 million sq. ft. Following the Acquisition and Disposition, BTB’s total asset value will surpass $1.1 billion.

BTB’S OBJECTIVES

  • Generate stable monthly cash distributions that are reliable and fiscally beneficial to unitholders;
  • Grow the Trust’s assets through internal growth and accretive acquisitions in order to increase distributable income and therefore refund distributions;
  • Optimize the value of its assets through the dynamic management of its properties in order to maximize the long-term value of its properties and therefore, its units.

BTB offers a distribution reinvestment plan to unitholders whereby the participants may elect to have their monthly cash distribution reinvested in additional units of BTB at a price based on the weighted average price for BTB’s Units on the Toronto Stock Exchange for the five trading days immediately preceding the distribution date, discounted by 3%.

For more detailed information, visit BTB’s website at www.btbreit.com

FOR FURTHER QUESTIONS:

Stéphanie Léonard, Director of Communications

(T) 514-286-0188 x256

(E) sleonard@btbreit.com

 (1)GLA is presented on a square foot basis.
(2)Reference to the year the property was built.
(3)Strongco LP is part of BTB’s Top 10 Client list.
(4)GLA is presented on a square foot basis.
(5)Reference to the year the property was built/renovated.