Firm Capital Property Trust is to purchase a 42,884 square foot professional services medical building for a price of approximately USD6.7m (excluding transaction costs) subject to standard closing conditions.
The property is located in Barrie, Ontario, on Wellington St. West, a short distance to Highway 400 and the Dunlop Street West intersection. The property has excess development land possibilities.
The property is currently 99 per cent occupied by physicians and ancillary medical service providers. Based on the purchase price, the going-in capitalisation rate for the property is approximately 7.8 per cent.
The property diversifies the trust's property portfolio and is expected to provide stable cash flows. The acquisition will provide a solid foundation from which to grow the core service provider professional space end of the trust's portfolio.
The trust intends to fund the purchase through the assumption of an existing first mortgage on the property and internal cash resources. The acquisition is expected to close during April 2013 and is subject to the satisfaction of customary closing conditions.