January 17, 2012
ARTIS ANNOUNCES $75.3 MILLION EQUITY OFFERING AND $77.9 MILLION OF OFFICE PROPERTY ACQUISITIONS
NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR
FOR DISSEMINATION IN THE UNITED STATES
Artis Real Estate Investment Trust (TSX: AX.UN) ("Artis" or
the "REIT") announced today that it has entered into an
agreement to sell to a syndicate of underwriters led by RBC
Capital Markets, CIBC and Canaccord Genuity Corp. (the
"Underwriters"), on a bought deal basis, 5,000,000
trust units ("Units") at a price of $15.05 per Unit
for gross proceeds to Artis of $75,250,000 (the "Financing").
Artis has also granted the Underwriters an option to purchase
up to an additional 750,000 Units on the same terms and
conditions, exercisable at any time, in whole or in part, up
to 30 days following the closing of the Financing.
The Financing is being made pursuant to the REIT's base shelf
prospectus dated August 19, 2010. The terms of the offering
will be described in a prospectus supplement to be filed with
Canadian securities regulators. The Financing is expected to
close on or about January 26, 2012 and is subject to
regulatory approval.
Artis intends to use the net proceeds from the Financing to
fund future acquisitions, for debt repayment and for general
trust purposes.
Artis continues to enjoy a strong deal flow pipeline, with a
continued focus on the accretive acquisition of quality
commercial properties, in select markets in Canada and the
U.S.
Artis has entered into an unconditional agreement with
respect to the acquisition of North 48 Commercial Complex, a
63,571 square foot newly constructed Class B office property
located in Saskatoon, Saskatchewan. North 48 was constructed
in 2008, and is currently 100% leased to ICR Commercial Real
Estate and Cameco until 2018. The property includes a 22
stall enclosed parking garage and ample outdoor parking
spots. The property is centrally located on Millar Avenue,
the major north south connector road in the north business
district. The purchase price of CAD $18.4 million,
representing an average capitalization rate of 7.0%, is
expected to be financed with cash on hand. The acquisition is
expected to close on or about January 31, 2012.
On December 22, 2011, Artis acquired Two MarketPointe a
241,695 square foot LEED Gold Class A office property located
in Minneapolis, Minnesota. The property includes a 969 stall
parking structure which provides for an excellent parking
ratio of 4.0 stalls per 1,000 square feet of leasable space.
Tenant amenities include an on-site fitness facility, a deli
and convenience store, and a full-service bar and upscale
restaurant. Two MarketPointe was constructed in 2008, and is
currently 91.3% occupied by a mixture of national and
regional tenants, all with prescribed annual rent increases.
The weighted-average term to maturity of the leases is 7.0
years. The purchase price of US$59.5 million, which
represents a going-in capitalization rate of
7.5% on the building, was financed with cash on hand and from
the proceeds of a new US$40.64 million 5- year mortgage
bearing interest at a floating rate currently equivalent to
2.78% per annum. The purchase price
for the property includes $3.0 million for an additional 5.7
acres of land located directly adjacent to the property that
is available for development.
This press release shall not constitute an offer to sell, or
the solicitation of an offer to buy, any securities in any
jurisdiction. The Units being offered have not been and will
not be registered under the U.S. Securities Act of 1933 and
state securities laws. Accordingly, the Units may not be
offered or sold to U.S. persons except pursuant to applicable
exemptions from registration requirements.
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Artis is a diversified Canadian real estate investment trust
investing in office, industrial and retail properties. Since
2004, Artis has executed an aggressive but disciplined growth
strategy, building a portfolio of commercial properties in
Canada and the United States, with a major focus on Western
Canada. Artis' commercial property comprises nearly 16.9
million square feet of leasable area in 163 properties.
Leasable area by asset class is approximately 22.2% retail,
36.3% office and 41.5% industrial. The portfolio is
located
9.5% in British Columbia, 29.5% in Alberta, 5.5% in
Saskatchewan, 20.5% in Manitoba, 11.7% in Ontario and 23.3%
in the U.S.
For further information please contact Mr. Armin Martens,
President and Chief Executive Officer, Mr. Jim
Green, Chief Financial Officer or Ms. Kirsty Stevens, Chief
Administrative Officer at 1.204.947.1250
The Toronto Stock Exchange does not accept responsibility for
the adequacy or accuracy of this press release.
Suite 300 - 360 Main Street
Winnipeg, MB R3C 3Z3
T 204.947.1250 F 204.947.0453 www.artisreit.com
AX.UN on the TSX
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