TORONTO, Dec. 19, 2018 /CNW/ - Granite Real Estate
Investment Trust ("Granite") (TSX: GRT.UN; NYSE: GRP.U)
announced today that it has entered into a USD $185 million committed four-year senior unsecured
non-revolving term facility (the "Term Loan"). Through a cross
currency interest rate swap, Granite has exchanged the principal
and interest payments from the Term Loan for Euro denominated
payments at an all-in 1.225% fixed interest rate. Granite intends
to use the net proceeds from the Term Loan for general corporate
purposes, including to fund development and property
acquisitions.
Ilias Konstantopoulos, Granite's
CFO commented that "Further to the seven-year term loan previously
announced on December 12, 2018, we
are pleased to have sourced additional low cost and flexible debt
capital from a syndicate of leading Canadian financial institutions
that will further enable the execution of our strategy. Pro forma
this four-year Term Loan and the seven-year term loan previously
announced, Granite's interest-bearing debt remains entirely
unsecured, provides a natural and partial hedge to our European
asset base and cash flows, has a weighted average cost of 2.18%, a
weighted average term to maturity of 4.8 years and is entirely at a
fixed rate of interest."
ABOUT GRANITE
Granite is a Canadian-based REIT engaged in the acquisition,
development, ownership and management of industrial, warehouse and
logistics properties in North
America and Europe. Granite
owns over 85 investment properties representing approximately 33
million square feet of leasable area.
OTHER INFORMATION
Copies of financial data and other publicly filed documents are
available through the internet on the Canadian Securities
Administrators' System for Electronic Document Analysis and
Retrieval (SEDAR) which can be accessed at www.sedar.com and
on the United States Securities and Exchange Commission's
Electronic Data Gathering, Analysis and Retrieval System (EDGAR)
which can be accessed at www.sec.gov. For further
information, please see our website at www.granitereit.com or
contact Kevan Gorrie, President and
Chief Executive Officer, at 647-925-7500 or Ilias Konstantopoulos, Chief Financial Officer,
at 647-925-7540.
FORWARD LOOKING STATEMENTS
This press release may contain statements that, to the extent
they are not recitations of historical fact, constitute
''forward-looking statements'' or "forward-looking information"
within the meaning of applicable securities legislation, including
the United States Securities Act of 1933, as amended, the United
States Securities Exchange Act of 1934, as amended, and applicable
Canadian securities legislation. Forward-looking statements and
forward-looking information may include, among others, statements
regarding the impact of the Term Loan, including Granite's ability
to execute on its strategy and the intended use of the proceeds and
Granite's future plans, goals, strategies, intentions, beliefs,
estimates, costs, objectives, economic performance, expectations,
or foresight or the assumptions underlying any of the foregoing.
Words such as "may", "would", "could", "will", "likely", "expect",
"anticipate", "believe", "intend", "plan", "forecast", "project",
"estimate", "seek" and similar expressions are used to identify
forward-looking statements and forward-looking information.
Forward-looking statements and forward-looking information
should not be read as guarantees of the expected impact of the Term
Loan or its intended use of proceeds as described herein or other
events, performance or results and will not necessarily be accurate
indications of whether or the times at or by which such future
events or performance will be achieved. Undue reliance should not
be placed on such statements. Forward-looking statements and
forward-looking information are based on information available at
the time and/or management's good faith assumptions and analyses
made in light of its perception of historical trends, current
conditions and expected future developments, as well as other
factors management believes are appropriate in the circumstances,
and are subject to known and unknown risks, uncertainties and other
unpredictable factors, many of which are beyond Granite's control,
that could cause actual events or results to differ materially from
such forward-looking statements and forward-looking information.
Important factors that could cause such differences include, but
are not limited to, the risks set forth in the annual information
form of Granite REIT and Granite REIT Inc. dated March 1, 2018 (the "Annual Information
Form"). The "Risk Factors" section of the Annual Information
Form also contains information about the material factors or
assumptions underlying such forward-looking statements and
forward-looking information. Forward-looking statements and
forward-looking information speak only as of the date the
statements and information were made and unless otherwise required
by applicable securities laws, Granite expressly disclaims any
intention and undertakes no obligation to update or revise any
forward-looking statements or forward-looking information contained
in this press release to reflect subsequent information, events or
circumstances or otherwise.
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SOURCE Granite Real Estate Investment Trust