CPE News (4/14/2021) – PRO Real Estate Investment Trust (TSX: PRV.UN) has closed previously announced non-brokered private placement of 8,264,463 trust units at a price of $6.05 per unit for gross proceeds of $50 million.
Collingwood Investments Incorporated, a member of the Bragg Group of Companies of Nova Scotia is the sole subscriber. Collingwood Investments Incorporated received a capital commitment fee equal to 3% of the gross proceeds of the private placement upon closing.
Together with Matthew Bragg, a related party, Collingwood now exercises control and direction over an aggregate of 9,465,463 Units, representing approximately 19.6% of the units and special voting units issued and outstanding in PROREIT. Prior to the closing, Collingwood, together with Bragg, beneficially owned and exercised control over 1,201,000 units representing approximately 3.0% of the units and special voting units issued and outstanding of PROREIT.
Collingwood is now the only entity benefically controlling over 10% of the outstanding units.
PROREIT intends to use the net proceeds (i) to partially fund its proposed acquisition of a 100% interest in 12 industrial properties, including three properties in Ottawa, Ontario, representing 283,000 square feet of gross leasable area (GLA) and nine properties in Winnipeg, Manitoba, representing 288,000 square feet of GLA, for an aggregate purchase price of approximately $86.8 million (excluding closing costs), (ii) to repay certain indebtedness which may be subsequently redrawn, and (iii) the balance if any to fund future acquisitions and for general business and working capital purposes.
photo credit: PROREIT
News Release
PROREIT Completes $50 Million Private Placement
/NOT FOR DISSEMINATION IN THE UNITED STATES OR DISTRIBUTION THROUGH UNITED STATES NEWS OR WIRE SERVICES/
MONTRÉAL, QC, April 14, 2021 /CNW Telbec/ – PRO Real Estate Investment Trust (TSX: PRV.UN) (“PROREIT” or the “REIT”) is pleased to announce the closing of its previously announced private placement of $50 million of trust units (the “Private Placement”).
Pursuant to the Private Placement, 8,264,463 trust units of PROREIT were issued from treasury on a non-brokered private placement basis at a price of $6.05 per unit to Collingwood Investments Incorporated, a member of the Bragg Group of Companies, from Nova Scotia. As a result of the Private Placement, Collingwood Investments Incorporated, together with a related party, has a voting and economic interest of approximately 19.6% in PROREIT. Collingwood Investments Incorporated received a capital commitment fee equal to 3% of the gross proceeds of the Private Placement upon closing.
PROREIT intends to use the net proceeds from the Private Placement (i) to partially fund its proposed acquisition of a 100% interest in 12 industrial properties, including three properties in Ottawa, Ontario, representing 283,000 square feet of gross leasable area (“GLA”) and nine properties in Winnipeg, Manitoba, representing 288,000 square feet of GLA (collectively, the “Acquisitions”), for an aggregate purchase price of approximately $86.8 million (excluding closing costs), (ii) to repay certain indebtedness which may be subsequently redrawn, and (iii) the balance if any to fund future acquisitions and for general business and working capital purposes.
The Acquisitions are subject to customary closing conditions and are expected to close in the second quarter of 2021. For more information on the Acquisitions and the intended use of the net proceeds from the Private Placement, please refer to the March 15, 2021 press release of PROREIT.
About PRO Real Estate Investment Trust
PROREIT is an unincorporated open-ended real estate investment trust established pursuant to a declaration of trust under the laws of the Province of Ontario. PROREIT was established in March 2013 to own a portfolio of diversified commercial real estate properties in Canada, with a focus on primary and secondary markets in Québec, Atlantic Canada and Ontario with selective expansion into Western Canada. PROREIT’s portfolio is diversified by property type and geography.
For more information on PROREIT, please visit the website at: https://proreit.com.
Neither the TSX nor its Regulation Services Provider (as that term is defined in the policies of the TSX) accepts responsibility for the adequacy or accuracy of this release.
SOURCE PROREIT
For further information: For further information, please contact: PRO Real Estate Investment Trust, James W. Beckerleg, President and Chief Executive Officer, 514-933-9552; PRO Real Estate Investment Trust, Gordon G. Lawlor, CPA, CA, Executive Vice President and Chief Financial Officer, 514-933-9552