November 18, 2013 08:00

Acquisition Highlights

– Multi-tenant retail centre located in Red Deer, Alberta with total gross leasable area of 63,328 sq. ft. on 4.72 acres

– Quality constructed buildings with 100% occupancy

– Weighted average remaining lease term of 4.39 years with built-in rental revenue growth

– Strategically located on the Gasoline Alley traffic corridor of HWY 2 which connects Calgary to Edmonton

EDMONTON, ALBERTA–(Marketwired – Nov. 18, 2013) – Melcor REIT (TSX:MR.UN) today announced that it has entered into an unconditional purchase agreement to acquire Liberty Crossing in Red Deer, Alberta for $13.2 million (excluding closing costs). The acquisition is expected to close on or around December 3, 2013.

Darin Rayburn, Chief Executive Officer of Melcor REIT, commented on the acquisition: “We are excited to enter Red Deer with the acquisition of Liberty Crossing. This property complements our portfolio and expands our retail offering to the growing Red Deer market, an important geographic and economic connector in Alberta.”

Management expects that the acquisition will be accretive to AFFO by $0.02 per unit on an annualized basis. The acquisition will be funded through the REIT’s line of credit. Following the acquisition, the REIT’s Debt to Gross Book Value ratio will increase to 49%, remaining below the targeted range of 50%-55%.

Rayburn continued: “We continue to look at potential acquisitions that fit our acquisition strategy.”

About Melcor REIT

Melcor REIT is an unincorporated, open-ended real estate investment trust. Melcor REIT owns, acquires, manages and leases quality retail, office and industrial income-generating properties with exposure to high growth western Canadian markets. Its portfolio is currently made up of interests in 29 properties representing approximately 1.69 million square feet of gross leasable area located in and around Edmonton, Calgary, Lethbridge, and Red Deer, Alberta; Regina, Saskatchewan; and Kelowna, British Columbia. For more information, please visit

Forward-Looking Statements

This press release may contain forward-looking information within the meaning of applicable securities legislation, which reflects the REIT’s current expectations regarding future events. Forward-looking information is based on a number of assumptions and is subject to a number of risks and uncertainties, many of which are beyond the REIT’s control, that could cause actual results and events to differ materially from those that are disclosed in or implied by such forward-looking information. Such risks and uncertainties include, but are not limited to, general and local economic and business conditions; the financial condition of tenants; the REIT’s ability to refinance maturing debt; leasing risks, including those associated with the ability to lease vacant space; and interest rate fluctuations. The REIT’s objectives and forward-looking statements are based on certain assumptions, including that the general economy remains stable, interest rates remain stable, conditions within the real estate market remain consistent, competition for acquisitions remains consistent with the current climate and that the capital markets continue to provide ready access to equity and/or debt. All forward-looking information in this press release speaks as of the date of this press release. The REIT does not undertake to update any such forward-looking information whether as a result of new information, future events or otherwise.

Additional information about these assumptions and risks and uncertainties is contained in the REIT’s filings with securities regulators.

Contact Information:

Investor Relations
Nicole Forsythe
Director, Corporate Communications
Tel: 1.855.673.6931

Information note:

Please note that the numerical information stated in press releases are outlined as-at the date of the press release.

Share this article:

RSS Feed