- Artis enters into an agreement to sell GTA industrial
portfolio for $750.0 million,
representing a price per square foot of $297
- Sale price for the transaction exceeds the REIT's most
recently reported IFRS fair value of $550.7
million by 36.2%
- Transaction is expected to generate net proceeds of
approximately $734 million that will
be used to strengthen the REIT's balance sheet and to provide
liquidity and flexibility to execute the REIT's previously
announced strategy
WINNIPEG, MB,
June 21, 2021 /CNW/ - Artis Real
Estate Investment Trust ("Artis" or the "REIT") (TSX: AX.UN)
announced today that it has entered into an unconditional agreement
to sell its Greater Toronto Area
("GTA") industrial portfolio, comprising 28 properties totaling
over 2.5 million square feet of leasable area located in the GTA
for $750.0 million. The sale price
represents a price per square foot of $297.
"The monetization of our GTA industrial portfolio represents a
significant milestone in the implementation of our Business
Transformation Plan," said Samir
Manji, President and Chief Executive Officer of Artis. "This
transaction reaffirms the demand for industrial real estate assets
and demonstrates the significant value that exists within our
diversified real estate portfolio. The net proceeds from the sale
will be used to meaningfully reduce our debt and provide ample
financial flexibility to execute on our return of capital and value
investing strategies."
In March 2021, Artis announced a
new vision and strategy for the REIT – to build a best-in-class
asset management and investment platform focused on growing net
asset value per unit and distributions for investors through debt
repayment, return of capital and value investing in real estate. As
part of this strategy, Artis announced that it will monetize part
of its industrial portfolio to strengthen its balance sheet and to
provide Artis with the liquidity and flexibility to execute on this
strategy.
After adjusting for the repayment of one outstanding mortgage of
approximately $15.2 million and
anticipated closing costs, the transaction will generate net
proceeds of approximately $734
million. The sale price for the portfolio exceeds the REIT's
most recently reported International Financial Reporting Standards
("IFRS") fair value of $550.7 million
by 36.2%.
"Today's announcement marks a milestone transaction for Artis,
and truly reinforces the strength of our management team, the value
of our platform and our ability to unlock unitholder value," said
Ben Rodney, Chair of the Board of
Trustees of Artis. "We are very pleased with the outcome and look
forward to building upon this important achievement in the quarters
to come."
The transaction is the result of an internally managed, formal
and extensive sale process.
The transaction is subject to routine Competition Bureau
approval and is expected to close in the third quarter of 2021.
Artis is a diversified Canadian real estate investment trust
with a portfolio of industrial, office and retail properties in
Canada and the United States. Artis' vision is to build a
best-in-class asset management and investment platform focused on
growing net asset value per unit and distributions for investors
through debt repayment, return of capital and value investing in
real estate.
Cautionary Statements
This press release contains forward-looking statements. For this
purpose, any statements contained herein that are not statements of
historical fact may be deemed to be forward-looking statements.
Without limiting the foregoing, the words "expects", "anticipates",
"intends", "estimates", "projects", "seeks", and similar
expressions or variations of such words and phrases or state that
certain actions, events or results ''may'', ''would'' or ''will''
occur or be achieved are intended to identify forward-looking
statements. Particularly, statements regarding Artis' Business
Transformation Plan, the steps required to implement the Business
Transformation Plan, building Artis into a best-in-class asset
management and investment platform focused on value investing in
real estate, significant value creation, the REIT's ability to
execute its strategy, the REIT's ability to unlock unitholder value
and anticipated net proceeds of the transaction are forward-looking
statements. Forward-looking statements are based on a number of
factors and assumptions which have been used to develop such
statements, but which may prove to be incorrect. Artis cannot
assure investors that actual results will be consistent with any
forward-looking statements and Artis assumes no obligation to
update or revise such forward-looking statements to reflect actual
events or new circumstances. All forward-looking statements
contained in this press release are qualified by this cautionary
statement.
SOURCE Artis Real Estate Investment Trust