MONTREAL, Sept. 10, 2018 (GLOBE NEWSWIRE) -- (TSX-V: FRO.UN) Fronsac Real Estate Investment Trust (“Fronsac REIT” or “Fronsac”) is pleased to announce the acquisition of a property in Mont Laurier, Quebec. The property is a grocery store operated under the IGA banner. Total consideration paid for the property was $8,880,000 (excluding transaction costs), representing a 6.75% capitalization rate, and was settled in cash.
In addition, Fronsac also announces the acquisition of a parcel of land in Salaberry-de-Valleyfield, Quebec, with the intention to develop a freestanding Benny & Co restaurant as well as a service station with a quick service restaurant. This development is being done in partnership with the development firm Immeubles Novard Inc. (“Novard”). This is Fronsac’s first joint venture development with Novard. The land is strategically located along Monseigneur Langlois boulevard, a highly trafficked artery in Valleyfield. Fronsac will retain a 50% share in the joint venture. Project costs are expected to total approximately $4,800,000 with construction set to begin in Spring 2019.
About Fronsac - Fronsac Real Estate Investment Trust is an open-ended trust that acquires and owns high quality triple net and management-free commercial real estate properties.
Forward-Looking Statements - This press release contains forward-looking statements and information as defined by applicable securities laws. Fronsac warns the reader that actual events may differ materially from current expectations due to known and unknown risks, uncertainties and other factors that could cause actual results to differ materially from the results anticipated in such statements. Among these include the risks related to economic conditions, the risks associated with the local real estate market, the dependence to the financial condition of tenants, the uncertainties related to real estate activities, the changes in interest rates, the availability of financing in the form of debt or equity, the effects related to the adoption of new standards, as well as other risks and factors described from time to time in the documents filed by Fronsac with securities regulators, including the management report. Fronsac does not intend or undertake to update or modify its forward-looking statements even if future events occur or for any other reason, unless required by law or any regulatory authority.
Neither the TSX Venture Exchange Inc. nor its Regulation Services Provider (as that term is defined in the Policy of the TSX Venture Exchange) accepts any responsibility for the adequacy or accuracy of this release.
For further information please contact Jason Parravano at (450) 536-5328.