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 January 22, 2016 - 6:03 PM EST
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Agellan Commercial Real Estate Investment Trust Provides Update on Recent Leasing Activity, Parkway Place and Its Fourth Quarter Conference Call


Agellan Commercial Real Estate Investment Trust (“Agellan”) (TSX: ACR.UN) provided an update today on positive leasing activity which it experienced in its portfolio during the fourth quarter of 2015 as well as recent developments in respect of its Parkway Place complex.

Parkway Place, Toronto, Ontario:

  • Agellan is pleased to announce two recent leasing achievements for approximately 10,500 square feet and 6,000 square feet of currently vacant space. The terms of these leases are 8 years and 10 years, respectively.
  • Both agreements have been completed at prevailing market rents.
  • As a result of several quarters of positive leasing momentum, Agellan has increased the committed occupancy of Parkway Place to approximately 88%.
  • In the fourth quarter of 2015, Agellan obtained partial site plan and zoning approvals from the City of Toronto relating to the proposed re-zoning of certain lands at the Parkway Place complex required in order to complete the construction of a new retail development and related parking garage. Agellan continues to work closely with the City of Toronto in order to obtain all necessary approvals.

As a result of the positive leasing momentum as well as various macro-economic factors (including the value of the Canadian dollar as compared to the U.S. dollar), Agellan’s management recommended to the Board of Trustees, and the Trustees agreed to no longer prioritize exploring the potential sale of all or a part of Parkway Place at this time. Rather, management is currently prioritizing the proposed development opportunities at Parkway Place, the maintenance and operation of the existing property, and improving the overall lease profile within the complex.

Gatineau, Quebec:

  • Agellan is pleased to announce that it has reduced some of the recent vacancy experienced at its Gatineau property by leasing approximately 8,000 square feet for a lease term of 10 years.

Austin, Texas:

  • A major tenant at Agellan’s Woodward Street property in Austin, Texas has extended its lease for an additional 7 years.
  • This lease previously represented Agellan’s most significant lease expiry during 2016, based on gross leasable area.
  • Agellan has seen market rents increase significantly at its Austin properties resulting, at certain times, in net rental rate growth in excess of 20%.
  • Agellan’s Austin properties are currently 100% occupied and have approximately 13,000 square feet of remaining lease expires during 2016.

Houston, Texas:

  • Occupancy rate increases continued throughout Agellan’s Houston industrial properties.
  • During the fourth quarter of 2015, Agellan entered into new leases representing in aggregate approximately 33,000 square feet with occupancy dates that all occurred on or before November 1, 2015.
  • Agellan’s Houston industrial properties continue to experience steady leasing activity and moderate rental rate growth, which Agellan expects to capitalize on as a majority of its 2016 lease expiries relate to these properties.
  • As previously announced, Agellan has minimal exposure to tenants who derive revenue from the oil and gas industry and only approximately 175,000 square feet of its Texas portfolio is occupied by tenants with direct exposure to the oil and gas industry.
  • National Oilwell Varco, an “A+” rated company by Standard & Poor’s, currently occupies approximately 88,000 square feet of Agellan’s properties in Houston, Texas. The lease with this tenant is scheduled to expire in September 2020.
  • The weighted average remaining lease term for Agellan’s direct oil and gas related tenants is approximately 3.2 years with approximately 86,000 square feet of related leases scheduled to expire in the next 2 years.
  • This exposure represents approximately 4% of the entire gross leasable area in Agellan’s overall portfolio, and also approximately 6% of Agellan’s total minimum rent.

Columbus, Ohio:

  • During the fourth quarter of 2015, Agellan entered into 3 leases totaling approximately 17,700 square feet at its Columbus properties increasing the occupancy rate of these properties to 100%.
  • Included in the approximately 17,700 square feet are two lease renewals that were completed at average net rent increases of approximately 12% as compared to the expiring rents.
  • As a result of these leasing achievements, there are no lease maturities scheduled to occur at Agellan’s Columbus properties during 2016.

Fourth Quarter Conference Call

Agellan announced today that it will hold a conference call to discuss its financial performance for the period ended December 31, 2015 on Tuesday, March 8, 2016 at 2:00 p.m. EST. The results will be released prior to the call.

To access the call, please dial 1-416-340-2217 or 1-866-696-5910 and enter the participant pass code: 8704321. For operator assistance during the call, please press *0.

A replay of the conference call will be available from 5:00 p.m. EST on March 8, 2016 until midnight EST, March 22, 2016. To access the replay, call 1-905-694-9451 or 1-800-408-3053 and enter participant pass code: 7156138.

About Agellan Commercial Real Estate Investment Trust

Agellan is an unincorporated, open-ended real estate investment trust established pursuant to a declaration of trust under the laws of the Province of Ontario. Agellan has been created for the purpose of acquiring and owning industrial, office and retail properties in select target markets in the United States and Canada.

Agellan’s current portfolio aggregates approximately 4.7 million square feet of gross leasable area in 32 properties. The properties are primarily located in major urban markets in the United States and Canada.

Additional information about Agellan is available at or

Forward-Looking Statements

This press release contains forward-looking information within the meaning of applicable securities legislation, which reflects Agellan’s current expectations regarding future events. Forward-looking information is based on a number of assumptions and is subject to a number of risks and uncertainties, many of which are beyond Agellan’s control that could cause actual results and events to differ materially from those that are disclosed in or implied by such forward-looking information. These forward-looking statements are made as of the date of this press release and, except as expressly required by applicable law, Agellan assumes no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events or otherwise.

Agellan Commercial Real Estate Investment Trust
Frank Camenzuli, 416-593-6800 x226
Fax: 416-593-6700

Source: Business Wire (January 22, 2016 - 6:03 PM EST)

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