North America Real Estate - Operations and Strategy
Dundee REIT details Q3 transaction, financing activity
November 04, 2009 6:40 PM ET
By Muhammad Mustafa
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Dundee REIT detailed its third-quarter transaction and financing activity in its earnings release issued Nov. 3. The company said it sold two industrial properties in Edmonton, Alberta, for net proceeds of C$14.9 million Aug. 31. On Sept. 1, the company purchased its partner's 50% interest in 720 Bay St. in Toronto for C$25.9 million, inclusive of transaction costs. Dundee REIT entered into exclusive letter agreements, subject to due diligence and finalizing purchase and sale agreements, to acquire C$140 million of predominantly office properties in Toronto and Ottawa totaling 1.2 million square feet at an overall cap rate of approximately 9.3%. During the quarter, the company made C$3.9 million of scheduled repayments on mortgages and term debt and repaid an additional C$24.3 million upon the maturity of mortgages related to two properties. Dundee REIT now owns four unencumbered properties that may be leveraged to provide additional financing. As a result of various financing activities, the overall weighted average interest rate was further reduced to 5.75% from 5.83% at Dec. 31, 2008. The year-to-date interest coverage ratio remains at 2.3x, the company added. | 
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