Partners Real Estate Investment Trust finalized C$32.3 million of mortgage financings at two of its Canadian properties and announced a plan to redeem all outstanding series III 5.5% convertible unsecured subordinated debentures due March 31, 2018.
The company closed a five-year C$20.8 million mortgage at its Mariner Square property in Campbell River, British Columbia, Dec. 15. The mortgage has a 25-year amortization period and an interest rate of 3.77%. Partners REIT will apply C$16.3 million of the mortgage funds toward repayment of the property's existing mortgages, which carried a weighted average interest rate of 5.68%.
The company also closed a five-year C$11.5 million mortgage at its Cobblestone Lane property in Grande Prairie, Alberta, Dec. 18. The mortgage has a 25-year amortization period and an interest rate of 3.70%. The company noted that it will use C$9.8 million of the mortgage funds to repay the property's existing mortgages, which carried a weighted average interest rate of 4.77%.
Net proceeds from the transactions totaled C$6.2 million, which will go toward debt repayment.
Partners REIT added that it will redeem the 5.5% debentures Jan. 17, 2018. The debentures will be redeemed upon payment of a redemption amount of C$1,016.424658 for each C$1,000 principal amount of the debentures.