Skyline Commercial REIT Announces Large Portfolio Sale/Leaseback Transaction

December 17, 2018 - Press Release

Skyline Commercial REIT is pleased to announce the acquisition of a 9-property national portfolio of temperature-controlled warehouses through a sale/leaseback transaction with Congebec Inc. This $190M transaction closed on December 13th and represents a material, accretive transaction for the fund.

The acquisition totals 1,318,752 rentable square feet across five markets- Calgary (1), Saskatoon (1), Winnipeg (1), Montreal (GMA); (3) and Quebec City (3). The breakdown of properties is provided in the table below. This transaction is also Skyline Commercial REIT’s first acquisition in the Province of Manitoba.

 

Address Rentable Area (sq. ft.)
5500 72nd Ave SE, Calgary, AB 200,122
810 60th Street E, Saskatoon, SK 84,365
1555 Chevrier Blvd, Winnipeg, MB 319,481
130 Rue J.A Bombardier, Boucherville, QC 129,043
2050 Rue Bombardier, Sainte-Julie, QC 203,641
7801 Blvd Henri-Bourassa Est, Montreal, QC 116,166
370 Metivier Street, Quebec City, QC 99,029
810 Godin Avenue, Quebec City, QC 98,386
800 Fernand Dufour Street, Quebec City, QC 53,787

 

“Congebec has been investing heavily over the past 5 years to support its aggressive growth plan,” commented Nicholas P. Pedneault, President & CEO at Congebec. “Partnering with Skyline to reconfigure our capital and stabilize our cost structure for the next 20 years was the best decision to continue with our growth.  We got to know the people at Skyline very well over this past year and there is a clear cultural fit and we are excited to create a successful partnership between the two companies.”

This acquisition follows Skyline’s core strategy of securing functionally modern industrial buildings offering long-term stable income for unitholders from tenancies with proven operating histories. Congebec will continue to lease 8 of the 9 properties on long-term leases and the ninth property at 370 Rue Metivier in Quebec City is leased by the food and pharmaceutical company Metro Richelieu Inc.

“The frozen food industry continues to enjoy double-digit annual growth in North America and Congebec’s leadership position in the logistics side of this virtually recession proof sector bodes well for their continued growth and success” shares Michael Mackenzie, President of Skyline Commercial REIT.  “We have come to know the management team at Congebec through the course of discussion this past year and believe we will work extremely well together to the benefit of both our businesses.”

The acquisition’s weighted average lease term (WALT) is over 18 years and increases the entire Skyline Commercial REIT portfolio’s WALT to over 9 years. Mackenzie adds, “the deal is expected to increase the portfolio’s asset value by over 25% and on a funds from operations per Unit basis will be strongly accretive to the fund.”

Post-acquisition, Skyline Commercial REIT has 98 properties in 34 cities across ON, QC, SK, MB, and AB, with more than 6 million square feet of commercial space.

About Skyline Commercial REIT

 Skyline Commercial REIT is one of five private investment products under Skyline Group of Companies, a national real estate investment, and property management organization. Skyline Commercial REIT is committed to providing the best in class commercial spaces to its tenants with the focus on delivering stable returns to its investors.

Skyline Group of Companies currently manages approximately $4.5 billion in assets and provide over 2,600 investor households with exceptional investment opportunities in these privately-held products.

Click here to learn more about Skyline Group of Companies

 

About Congebec

Congebec is a Canadian based supplier of multi-temperature storage, value added & distribution services supporting the food, retail and CPG industry.  Committed to food safety, Congebec is a leader in the Canadian marketplace and is ranked 10th in North America and 15th in the world.  With more than 400 employees and 45 years of experience, the company operates 13 modern facilities totaling more then 50 Million cubic feet.  These facilities are strategically located in Quebec, Ontario, Manitoba, Saskatchewan & Alberta.

To learn more about Congebec, please visit http://www.congebec.com/

 

For media inquiries, please contact: 

Jeff Stirling
Director of Marketing, Skyline Group of Companies
5 Douglas Street, Suite 301
Guelph, ON N1H 2S8
519.826.0439

Disclaimer

The information provided on this website is for general information purposes only and is derived from sources that Skyline Commercial REIT believes are reliable. This website does not constitute an offer of, or solicitation for, the purchase and sale of any securities under any circumstances. Please read the confidential offering documents before investing, as they contain important information on fees and risk factor. Nothing herein should be construed as investment, legal, tax, regulatory or accounting advice.