VANCOUVER, BC--(Marketwired - February 22, 2017) - Pure Industrial Real Estate Trust (TSX: AAR.UN) (the "Trust") announced today that the Trust entered into an unconditional agreement to acquire a core asset (the "Houston Acquisition") in Houston, Texas and a commitment with two Canadian chartered banks for a $150 million unsecured credit facility.

/EINPresswire.com/ -- HOUSTON ACQUISITION

The Trust announced today that it has entered into an unconditional agreement to acquire the Cedar Port Distribution Centre, consisting of two newly-constructed buildings comprising a total of 996,482 square feet ("sf"), for a purchase price of approximately $83.2 million (US$63.5 million), representing a going-in capitalization rate of approximately 6.8% and a price per sf of approximately $84 (US$64). The Trust will acquire the Houston Acquisition using cash on hand and its existing operating line. The assets are expected to be subsequently financed with a new mortgage following closing for approximately 50% of the purchase price on terms yet to be determined. The Houston Acquisition is expected to close in March, 2017.

Key highlights of the Houston Acquisition include:

• Investment in two brand new Class A distribution centres in one of the Trust's target U.S. markets;
• 100% leased to the world's largest furniture retailer, IKEA Distribution Services Inc. ("IKEA"). This asset will serve as IKEA's distribution and e-commerce logistics centre for Texas and the surrounding growth markets;
• Five-year lease term at competitive rent levels with escalations;
• Increased presence in the Texas market. The acquisition represents the Trust's third investment in Texas, complementing existing assets in San Antonio and Austin;
• Strategic location within one of the fastest growing cities in the U.S. The assets are within close proximity to the Port of Houston and major Interstates and railways; and
• Immediately accretive to Adjusted Funds From Operations.

$150 MILLION UNSECURED CREDIT FACILITY

The Trust also announced that it has entered into a commitment with two Canadian chartered banks for a $150 million unsecured credit facility. The new facility will replace the Trust's current $110 million secured credit facility. The new facility will have a three-year term, will bear interest at more favourable rates than the current facility and will contain customary financial covenants for an unsecured credit facility. The Trust will have the option to increase the new facility up to an additional $100 million for a total facility limit of $250 million, further enhancing the Trust's liquidity and financial flexibility.

Upon closing, the Trust will hold an unencumbered investment property portfolio with a value of over $350 million representing approximately 15% of the Trust's aggregate investment property portfolio. The new facility is expected to close in early Q2 2017.

ABOUT PURE INDUSTRIAL REAL ESTATE TRUST

The Pure Industrial Real Estate Trust is an unincorporated, open-ended investment trust that owns and operates a diversified portfolio of income-producing industrial properties in leading markets across Canada and key distribution and logistics markets in the United States. The Trust is an internally managed REIT and is one of the largest publicly-traded REITs in Canada that offers investors exposure to industrial real estate assets in Canada and the United States.

Additional information about the Trust is available at www.piret.ca or www.sedar.com.

Toronto Stock Exchange - AAR.UN

Non-GAAP Measures:

The Trust prepares and releases unaudited quarterly and audited consolidated annual financial statements prepared in accordance with IFRS (GAAP). In this release, the Trust discloses and discusses certain non-GAAP financial measures, including capitalization rate and Adjusted Funds From Operations ("AFFO"). The non-GAAP measures are further defined and discussed in the MD&A filed on November 11, 2016 on SEDAR, which should be read in conjunction with this release. Since AFFO and capitalization rate are not determined by IFRS, such measures may not be comparable to similar measures reported by other issuers. The Trust has presented such non-GAAP measures as management believes the measure is a relevant measure of the ability of the Trust to earn and distribute cash returns to Unitholders and to evaluate the Trust's performance. These non-GAAP measures should not be construed as alternatives to net income (loss) or cash flow from operating activities determined in accordance with GAAP as an indicator of the Trust's performance. Please refer to "Additional IFRS Measures and Non-IFRS Measures" in the Trust's MD&A.

Forward-Looking Information:

Certain statements contained in this news release may constitute forward-looking statements. Forward-looking statements are often, but not always, identified by the use of words such as "anticipate", "plan", "expect", "may", "will", "intend", "should", and similar expressions. These statements involve known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such forward-looking statements. Forward looking statements in this news release include the following: (i) the Houston Acquisition is expected to be subsequently financed with a new mortgage following closing for approximately 50% of the purchase price on terms yet to be determined; (ii) the Houston Acquisition is expected to close in March, 2017; and (iii) the new facility is expected to close early Q2 2017.

Although the Trust believes that the expectations and assumptions on which the forward-looking statements are based are reasonable, undue reliance should not be placed on the forward-looking statements because the Trust can give no assurance that they will prove to be correct. Since forward-looking statements address future events and conditions, by their very nature they involve inherent risks and uncertainties. Actual results could differ materially from those currently anticipated due to a number of factors and risks. These include, but are not limited to, competitive factors in the industries in which the Trust operates, prevailing economic conditions, and other factors, many of which are beyond the control of the Trust.

The forward-looking statements contained in this news release represent the Trust's expectations as of the date hereof, and are subject to change after such date. The Trust disclaims any intention or obligation to update or revise any forward-looking statements whether as a result of new information, future events or otherwise, except as required under applicable securities regulations.

THE TORONTO STOCK EXCHANGE HAS NOT REVIEWED AND DOES NOT ACCEPT RESPONSIBILITY FOR THE ADEQUACY OR THE ACCURACY OF THIS RELEASE.

Image Available: http://www.marketwire.com/library/MwGo/2017/2/22/11G131061/Images/Houston_combined_and_label-9d35bd5ff04cbd0c9cd5d1dbb84f608e.jpg