Fronsac Announces the Closing of Two Previously Announced Acquisitions

Source Company Press Release
Company FRONSAC Real Estate Investment Trust
Tags Corporate: Overview/Strategy, Country: Canada, Downstream: Refining, M&A: Asset Deal, Deals
Date February 28, 2020

(TSX-V: FRO.UN) Fronsac Real Estate Investment Trust (“Fronsac REIT” or “Fronsac”) is pleased to announce the closing of two previously announced acquisitions. The first property acquired is in Farnham, Québec. It is composed of a  Petro-Canada gas station, a Beau-Soir convenience store and a Tim Hortons restaurant. Total consideration paid was $4.0 million (excluding transaction costs) and was settled in cash. The second property acquired is in Kenora, Ontario. It is composed of a retail store operated under the Walmart banner. Total consideration paid for the property was $12.0 million (excluding transaction costs) and was settled in cash.

These two acquisitions are part of the three previously announced acquisitions by Fronsac on January 20, 2020 (see: “Fronsac Announces Public Offering of Units and Agreements to Acquire Three Properties in Québec and Ontario”). The third acquisition is a 75%-interest in a property located in Saint-Étienne-des-Grès, Québec, composed of a Parkland gas station, a Beau-Soir convenience store and a Tim Hortons restaurant. This acquisition is set to close in mid-March 2020 for total consideration of approximately $3.0 million (excluding transaction costs).

The combined net operating income in respect of the three properties is approximately $1.5 million, representing a 7.9% weighted average capitalization rate based on the aggregate purchase price of approximately $19.0 million (excluding transaction costs).

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