MONTREAL, Oct. 08, 2020 (GLOBE NEWSWIRE) — (TSX-V: FRO.UN) Fronsac Real Estate Investment Trust (“Fronsac”) is pleased to announce the acquisition of one property and three joint venture developments, two of which are with a new strategic joint venture partner.
ONE PROPERTY ACQUISITION
Fronsac is proud to announce the addition of another grocery store to its portfolio. The property being acquired is operated under the Super C banner and is located on the main artery of Lavaltrie, Qc. The transaction is set to close by the end of October. Total consideration to be paid is $3,150,000 (excluding transaction costs) and will be settled in cash.THREE JOINT VENTURE DEVELOPMENTS
Fronsac also announces that it acquired participations in the following joint venture developments:On August 28th, Fronsac acquired a 50% interest in a land located in the heart of Longueuil, Qc, on St-Charles Street West. A Petro-Canada service-station will be built on the land. Total costs are expected to be approximately $2,300,000 and the project is expected to be completed in Q1 2021.On September 3rd, Fronsac acquired a 50% interest in a building located on Sherbrooke Street in Magog, Qc. The property will be demolished, and a new standalone Benny&Co. restaurant will be built. Total costs are expected to be approximately $1,500,000 and construction is set to begin in Q2 2021.
On September 30th, Fronsac acquired a 50% interest in a service-station operated under the Esso banner with a Boni-Soir convenience store and is located next to the above-mentioned restaurant in Magog, Qc. Total consideration paid for the property was $1,050,000 (excluding transaction costs) and was settled in cash.
During Q4 2020, Fronsac will complete the acquisition of a 50% interest in two buildings located on St-Joseph Boulevard in Drummondville, Qc. The first building is occupied by two quick service restaurants and will be repositioned during 2021. The second building is a standalone restaurant that will be demolished and replaced by a standalone Benny&Co. restaurant starting in 2020. Total costs are expected to be approximately $4,800,000.NEW STRATEGIC JOINT VENTURE PARTNER
Fronsac is proud to announce that it now counts Benny&Co. among its trusted partners. Over the past three years, Fronsac purchased and developed Benny&Co. restaurants, notably in Ste-Sophie, Cap Rouge, Mercier, Lachute and Valleyfield. Benny&Co. is now a partner with Fronsac and Odacité Immobilier Inc. in the above-mentioned Magog and Drummondville developments. Yves Benny, Vice-President of Market Development at Benny&Co. declares: “We believe that we found in Fronsac a strong partner and are thrilled about the many projects ahead”.About Fronsac – Fronsac Real Estate Investment Trust is an open-ended trust that acquires and owns high quality triple net and management-free commercial real estate properties.About Benny&Co. – Rotisserie Chicken since 1960, Benny&Co., the largest family-run rotisserie in Quebec, specializes and excels in roasting chicken with its exclusive three-hour slow-roasting technique developed by cofounder Gilles Benny. The network will reach more than 64 restaurants in Quebec and Ontario by the end of 2021. The company will be celebrating its 60th anniversary this year.Forward-Looking Statements – This press release contains forward-looking statements and information as defined by applicable securities laws. Fronsac warns the reader that actual events may differ materially from current expectations due to known and unknown risks, uncertainties and other factors that could cause actual results to differ materially from the results anticipated in such statements. Among these include the risks related to economic conditions, the risks associated with the local real estate market, the dependence to the financial condition of tenants, the uncertainties related to real estate activities, the changes in interest rates, the availability of financing in the form of debt or equity, the effects related to the adoption of new standards, as well as other risks and factors described from time to time in the documents filed by Fronsac with securities regulators, including the management report. Fronsac does not intend or undertake to update or modify its forward-looking statements even if future events occur or for any other reason, unless required by law or any regulatory authority.Neither the TSX Venture Exchange Inc. nor its Regulation Services Provider (as that term is defined in the Policy of the TSX Venture Exchange) accepts any responsibility for the adequacy or accuracy of this release.For further information please contact Jason Parravano at (450) 536-5328.
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