Montreal’s Proreit has sold three non-core assets for a total of $11.3 million.
The properties span approximately 63,000 square feet of gross leasable area, the REIT said in a news release. Proceeds were used to repay approximately $7.2 million in related mortgages maturing this year with the remained set aside for general business purposes.
So far this year, Proreit has sold four assets, including two office properties in Ottawa, another one in Amherst, N.S.; and a retail property in Sherbrooke, Que.
The Ottawa office asset generated gross proceeds of $9.1 million, while the Amherst office location fetched $2.1 million. The Quebec retail property, which includes a gas station, generated $2.2 million in gross proceeds.
Proreit is using proceeds from the Ottawa and Sherbrooke asset sales for mortgage repayments and general business purpose. The Amherst asset sale proceeds are being devoted entirely to general business purposes.
Proreit said occupancy remains high at about 99%.
As a result of the dispositions, Proreit now owns 126 investment properties, including a 50% ownership stake in 42 investment properties, which contain 6.4 million square feet of gross leasable area. The industrial sector accounts for 81% of the GLA and 72% of base rent.
The REIT said tenants have renewed leases on 87% of the 2023 GLA at an approximately 44% positive spread. And, about 12% of 2024 GLA has been renewed at approximately a 21% spread.
Proreit now has $46 million on an undrawn credit facility.
Monte Stewart serves as Content Director - Canada for Connect Commercial Real Estate.
Based in Vancouver, British Columbia, Monte provides daily news coverage of major Canadian commercial real estate markets, including Vancouver, Toronto, Montreal and Calgary. He has written about the real estate sector for various media outlets and Avison Young since the early 2000s.
In addition, he has covered sports, general news and business for several leading wire services and publications, including The Canadian Press, The Associated Press, The Calgary Herald, The Globe and Mail, Research Money, The Daily Oil Bulletin, Natural Gas World and The Toronto Star.
Monte is active in his community as a youth basketball coach and raises funds for such charitable causes as Movember.