A major real estate investment trust recently closed on a multi-millon dollar property in a high-profile Calgary business centre. True North Commercial Real Estate Investment Trust (REIT) of Canada has been busy in the world of mergers and acquisitions by securing the 148,000-square-foot property for $26.75 million, which closed in September. The property sits on more than 11 acres close to Calgary International Airport and to the city's main highway.
The building is fully occupied by a single tenant with a remaining lease of more than five years on average. The property also has 531parking spots. A portion of the financing for what REIT is now calling The Calgary Property, came from publicly traded shares. There is also a first mortgage on the property for more than $17 million at an interest rate of 4.02 per cent over four years.
REIT was established in Ontario under Ontario law. It is unincorporated and open-ended and currently has 45 properties -- all commercial -- totalling almost four million square feet. These properties are located throughout Canada. Its aim is to increase its acquisitions primarily in Canada. It is also open to properties elsewhere if they fit the portfolio.
Canada has many opportunities for business. Mergers and acquisitions are healthy in the nation and provide companies and entrepreneurs with favourable opportunities such as this recent Reit acquisition. But these are not deals for the faint of heart, nor are they for those without a firm grasp of business law. A lawyer may be able to provide his or her clients with wise advice prior to any deals being inked. It is better to be informed on the benefits and/or possible risks of a deal.