Agellan Commercial Real Estate Investment Trust Provides Update on Recent Leasing Activity, Parkway Place and Its Fourth Quarter Conference Call
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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,
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
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.
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.
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
Occupancy rate increases continued throughout Agellan’s Houston
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
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.
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
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:
About Agellan Commercial Real Estate Investment
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 www.agellancommercialreit.com
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.
View source version on businesswire.com: http://www.businesswire.com/news/home/20160122005994/en/
Copyright Business Wire 2016
Source: Business Wire
(January 22, 2016 - 6:03 PM EST)
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