Adventus Realty Trust (“Adventus”) is pleased to announce it has signed a Purchase and Sale Agreement (“PSA”) to acquire a 17 story office building (“Cumberland Center II”, or the “Property”) in the Cumberland Galleria submarket of suburban Atlanta, Georgia for consideration of US$75.7 million, subject to customary due diligence. Closing is expected by January 31, 2018.
Currently at 94% occupancy, Cumberland Center II is located in a vibrant submarket of Atlanta. This trophy-quality asset has convenient access to several neighboring executive communities and is located at the intersection of two of the sub-market’s main arteries, providing efficient connections to all areas of metro Atlanta. The Property offers many attractive on-sight amenities such as an adjacent hotel and a nearby major mall. Cumberland Center II is a proven office asset supported by 91% average occupancy since it was built in 1989.
Funding the Acquisition
The purchase of Cumberland Center II is expected to be funded with a combination of bank debt (approximately 60%) and equity from the sale of Adventus trust units. Fort Capital Securities Ltd. of Vancouver, BC has been engaged by Adventus to raise up to US$35 million of equity at a price of US$16.50 per trust unit.
The Board of Adventus has determined that, subject to the successful closing of the Property acquisition, the annual distributions on the Adventus trust units will increase from the current US$1.02 per unit to US$1.04 per unit, effective February, 2018, representing a yield based on the price of the new offering of 6.30%.
Adventus is a Canadian based private Real Estate Investment Trust (REIT) and is focused on US income producing commercial real estate, in the suburban office markets of Chicago, Illinois and Atlanta, Georgia. For more information on Adventus, including our team, corporate strategy, photo gallery, details of our portfolio and press releases, we invite you to visit our website at www.adventusrealty.com.
Cautionary Statements Regarding Forward-Looking Statements
This press release may contain forward-looking statements with respect to the REIT and its operations, strategy, financial performance and financial condition, as well as with respect to the previously disclosed acquisitions and future acquisitions of properties. These statements generally can be identified by the use of forward-looking terminology such as “anticipate”, “believe”, “plan”, “forecast”, “expect”, “intend”, “would”, “could”, “if”, “may” and similar expressions. The actual results and performance of the REIT and the acquisitions discussed herein could differ materially from those expressed or implied by such statements. Accordingly, readers should not place undue reliance on forward-looking statements. These cautionary statements qualify all forward-looking statements attributable to the REIT and persons acting on its behalf. Such statements are qualified in their entirety by the inherent risks and uncertainties surrounding future expectations. Some important factors that could cause actual results to differ materially from expectations include, among other things, general economic and market factors, changes in interest rates, competition and changes in securities or other laws or regulations or the application thereof. The cautionary statements qualify all forward-looking statements attributable to the REIT and persons acting on its behalf.
Unless otherwise stated, all forward-looking statements speak only as of the date of this press release. Except as required by applicable law, the REIT specifically disclaims any obligation to update or revise any forward-looking statements, whether as a result of new information, future developments or otherwise.
ADVENTUS REALTY TRUST
By its Trustee: ADVENTUS REALTY SERVICES INC.
Per: Rodney B. Johnston, FCPA, FCA
President and Chief Executive Officer