Business & Finance
Business and Finance
Business and Finance
Tue, February 1, 2011
Mon, January 31, 2011 Scott';s Real Estate Investment Trust granted additional five-month mortgage extension
TORONTO, Jan. 31 /CNW/ - Scott's Real Estate Investment Trust (TSX: SRQ.UN) ("Scott's REIT"), today announced that it received a five-month extension on its mortgage that is currently scheduled to mature on February 1, 2011. The extension has been granted using the same terms as the original loan - 4.9 per cent interest only, payable monthly. An additional extension may be made available, if required.
As an act of good faith, Scott's REIT made an immediate $1 million payment on the principal balance.
The mortgage is open for payment at any time during the five-month extension period. Should Scott's REIT choose to extend the loan beyond April 1, 2011, it will need to make an additional $5 million payment on the principal loan outstanding. If the full extension is utilized, the principal balance remaining on the mortgage will be $59 million on July 1, 2011.
As part of the one-month extension given on December 31, 2010, Scott's paid a total extension fee of 0.5 per cent on the remaining loan balance which will be reduced if the loan of repaid earlier than July 1, 2011.
The REIT is continuing its discussions with lenders to close the financing for the $64 million loan and $20 million outstanding bridge facility over the next five months. Although no assurance can be provided that this will be concluded on favourable terms, the company believes it is well advanced in negotiating the terms of the financing and is encouraged by the positive discussions to date.
About Scott's Real Estate Investment Trust
Scott's REIT (TSX: SRQ.UN) is Canada's premier small-box retail property owner with 220 properties in seven provinces across Canada. Scott's REIT's properties are well located and geographically diverse across Canada with the majority of all properties containing long-term quadruple net leases. The REIT has approximately 75.6 per cent interest in Scott's Real Estate LP. To find out more about Scott's Real Estate Investment Trust (TSX: SRQ.UN), visit our website at [ http://www.scottsreit.com ].
Forward-Looking Statements
This document contains certain information that may constitute forward-looking information within the meaning of securities laws. In some cases, forward-looking information can be identified by the use of terms such as "may", "will", "should", "expect", "plan", "anticipate", "believe", "intend", "estimate", "predict", "potential", "continue" or other similar expressions concerning matters that are not historical facts. Forward-looking information may relate to management's future outlook and anticipated events or results, and may include statements or information regarding future growth opportunities and potential and expected cash distributions or cash distribution levels. In particular, information regarding the REIT's monthly cash distributions and information relating to the impact of the REIT's recent acquisitions on annual revenues and interest expense is forward-looking information. Forward-looking information is based on certain factors and assumptions regarding, among other things, occupancy rates, property expense and capital expenditures. While the REIT considers these assumptions to be reasonable based on information currently available to it, they may prove to be incorrect. Forward looking-information is subject to certain factors, including risks and uncertainties, which could cause actual results to differ materially from what is currently expected. Such factors include risks relating to the REIT's reliance on Priszm LP, the REIT's largest tenant, risks associated with investment in real property, competition, reliance on key personnel, financing and refinancing risks, environmental matters, tenant risks, risks related to current economic conditions and other risk factors more particularly described in the REIT's Annual Information Form for the year ended December 31, 2009. You should not place undue importance on forward-looking information and should not rely upon this information as of any other date. Other than as required by applicable Canadian securities law, the REIT does not undertake to update this information at any particular time. Additional information identifying risks and uncertainties is contained in Scott's REIT filings with the Canadian securities regulators, available at [ www.sedar.com ].
