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.
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.
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