Granite REIT continues expansion in United States

by Steve Randall22 Oct 2019

Granite REIT has continued its push into the US market with the acquisition of two income-producing properties, a development property, and a new country leader.

The Toronto-based investment trust has acquired the fully-leased properties and is expected to close on a development property in the fourth quarter of 2019.

The combined acquisitions of around 3.5 million square feet for price of C$393 million represents an in-going weighted average yield of approximately 5.6%. 

The properties include distribution centres in Indiana and Georgia, and a fulfillment centre in Texas.

"These acquisitions further advance our strategy of acquiring and developing modern e-commerce fulfillment and distribution facilities in Granite's target markets in the US,” said Kevan Gorrie, Granite's President and CEO. “We expect these acquisitions to further enhance the quality of our portfolio, deliver stable and growing cash flow and generate net asset value growth for our unitholders.”

Granite has also extended and refinanced its US$185 million term loan to December 19, 2024 and entered into a new cross-currency interest rate swap resulting in Euro-denominated payments at a 0.522% fixed interest rate.

US leader
The REIT has appointed a new head of US to drive its business in the country.

Jon Sorg has joined Granite's senior leadership team and will be based out of a new Granite office in Dallas. He has 19 years of investment, asset management and valuation experience in a variety of markets across the south and central US.

“Jon brings significant investment, asset management and development expertise to the team and will be a key driver of Granite's US strategy moving forward," added Gorrie.

Are you looking to invest in property? If you like, we can get one of our mortgage experts to tell you exactly how much you can afford to borrow, which is the best mortgage for you or how much they could save you right now if you have an existing mortgage. Click here to get help choosing the best mortgage rate

Market update:

Get help choosing the best mortgage rate

Just fill in a few details, and we'll arrange for a Mortgage adviser to help you find the best mortgage for your needs

  • How soon do you want a mortgage?
  • Name
  • Where do you live?
  • Phone number
  • E-mail address

Industry news

Submit a press release


Do you invest in commercial properties?