MONTREAL, QUEBEC -- (Marketwire) -- 03/12/13 -- PRO Real Estate Investment Trust, to be known as PROREIT ("PROREIT"), officially began operations today as a real estate investment trust with a seasoned management team that intends to invest in diversified commercial property real estate markets in Canada. Initial focus will be on Quebec and the Maritimes, with other secondary Canadian markets being followed as well. The news follows the completion by Taggart Capital Corp. (the "Company) of its previously announced reorganization under a plan of arrangement (the "Arrangement") into a real estate investment trust. Shareholders of the Company (the "Shareholders") unanimously approved the Arrangement at a meeting held on March 8, 2013 (the "Meeting") and the Company obtained all necessary approvals to complete the Arrangement, including final approval of the TSX Venture Exchange (the "Exchange") and the Ontario Superior Court of Justice on March 11, 2013.
Pursuant to the Arrangement, among other things, the issued and outstanding common shares of the Company ("Shares") were exchanged for units of PROREIT ("Units") on a 10 for 1 basis (1 Unit for every 10 Shares). PROREIT meets all of the minimum listing requirements for a Tier 1 Real Estate Issuer on the Exchange.
As a result of the Arrangement, the Shares will be delisted from the Exchange. The Units will trade under the symbol "PRV.UN" when trading of the Units commences, which is expected to occur upon the open of markets on or about March 13, 2013.
"With the approvals of yesterday and Friday, we have achieved the first major milestone in the plan we set out last autumn. PROREIT is now a reality for our team, but it is only the beginning," said James Beckerleg, President and CEO. "Our objective is now to build a new national Canadian diversified REIT delivering growth and income to our unitholders. Our management experience and network has enabled us to hit the ground running with new acquisitions and we expect to grow our portfolio smartly and rapidly."
PROREIT Announces New Acquisitions
Mr. Beckerleg continued: "We are pleased to announce today that we have signed binding agreements to acquire three additional retail and office properties in Quebec and Nova Scotia for aggregate consideration of $11.95 million. Along with our qualifying transaction, a 10,574 square foot commercial property in downtown Moncton, our initial portfolio is taking shape. These acquisitions meet our objectives of building a portfolio with a solid foundation of stable properties possessing attractive lease and finance terms as well as strong covenants."
The binding agreements announced today comprise three buildings totalling 46,974 square feet. Total price for the three properties is $11.95 million, excluding closing and transaction costs, representing a going-in capitalization rate exceeding 7 percent. Each of these acquisitions is subject to satisfaction of usual closing conditions. The acquisitions will be funded in part by using the proceeds of a private placement completed in December 2012.
L'Ancienne-Lorette - Quebec
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