Partners Real Estate Investment Trust (the REIT) announced Tuesday that it had signed an agreement to purchase Campbell River’s Mariner Square Shopping Centre, a 97.8 per cent occupied six-building open-air retail centre aggregating approximately 101,000 square foot of Gross Leasable Area (“GLA”), the company announced in a press release.
Anchored by a Save-On Foods grocery store, London Drugs and a BC Liquor Store, as well as a Starbucks coffee shop and Subway restaurant, approximately 89 per cent of the property’s total in-place rental income is derived from necessity-based national, regional and government tenants.
The transaction is expected to close on or before April 15.
The REIT will pay approximately $25.8 million for the property, satisfied by the assumption of a $14.7 million current mortgage maturing in November 2017 bearing a mark-to-market interest rate of 3.5 per cent, with the balance in cash. The centre is estimated to generate current in-place annualized Net Operating Income of approximately $1.7 million and $0.8 million in annualized Funds from Operations.
“We are pleased to be expanding our presence on Vancouver Island with the purchase of Mariner Square,” said Patrick Miniutti, President. “The property is well-situated in a strong economic region experiencing solid population growth supported by two major infrastructure projects, and is consistent with our strategy to purchase retail assets with consistent and defensible cash flow.”
About Partners REIT
Partners REIT is a growth-oriented real estate investment trust, which currently owns (directly or indirectly) 33 retail properties in British Columbia, Alberta, Manitoba, Ontario and Quebec, aggregating approximately 2.3 million square feet of leasable space. Partners REIT focuses on expanding and managing a portfolio of retail and mixed-use community and neighbourhood shopping centres located in both primary and secondary markets across Canada.