Canadian REIT Investing in Central IndianaPosted: Updated:
Canadian investors have reached a nearly $70 million agreement to purchase three Plainfield properties. Granite Real Estate Investment Trust's agreement involves two Ingram Micro Inc. (NYSE:IM) distribution facilities and 29 additional acres in the AllPoints Midwest Business Park. December 22, 2014
Toronto, Ontario, Canada - Granite Real Estate Investment Trust (“Granite”) (TSX: GRT.UN / NYSE: GRP.U) today announced that it has agreed to purchase three properties from subsidiaries of Ingram Micro Inc. (“Ingram Micro”) (NYSE:IM) for a total purchase price of US$68.75 million.
The portfolio includes two state of the art logistics-distribution facilities in Plainfield (Indianapolis), Indiana, totaling 1,033,520 square feet at a purchase price of US$65.45 million.
The buildings are 533,520 square feet and 500,000 square feet, include a total of approximately 140,000 square feet of finished office space and were constructed in 2009 and 1999 respectively.
Ingram Micro will continue to occupy the premises and will enter into leases for an initial term of 10 years. Ingram Micro delivers a full spectrum of global technology and supply chain services to businesses around the world. Deep expertise in technology solutions, mobility, cloud, and supply chain solutions enables Ingram Micro’s business partners to operate efficiently and successfully in the markets they serve. The investment represents an in-going yield of approximately 6.5%.
As part of the transaction, Granite has also agreed to purchase 29 acres of adjacent expansion/development land in the AllPoints Midwest Business Park at a purchase price of
The development lands provide for up to 585,000 square feet of additional new logistics-industrial space.
The investment will be funded with Granite’s line of credit and cash on hand. The transaction is scheduled to close on or about December 30, 2014, subject to customary closing conditions.
Granite is a Canadian-based REIT engaged in the ownership and management of predominantly industrial, warehouse and logistics properties in North America and Europe. Granite owns approximately 30 million square feet in over 100 rental income properties.
Our tenant base currently includes Magna International Inc. and its operating subsidiaries as our largest tenants, together with tenants from other industries.
Source: Granite Real Estate Investment Trust