07:21 AM EDT, 08/21/2024 (MT Newswires) -- PRO Real Estate Investment Trust (PRV.UN.TO) Wednesday agreed to acquire 100% of a "strategically located industrial building" in Dorval, a suburb of Montreal, Quebec, adjacent to the international airport, for $32.6 million (excluding closing costs).

The acquisition has a going-in capitalization rate of approximately 6.7%.

A statement noted the purchase price will be financed through a new $21.2 million five-year first mortgage at a rate of 5.10%, with the balance funded by proceeds from previously announced non-core property sales and a draw on available operating facilities.

Gordon Lawlor, president and CEO of PROREIT, said the accretive acquisition aligns with the company's growth strategy and medium-term goals of expanding its industrial footprint to 90% of base rent and $2 billion in total asset value.

Upon completion of the deal, PROREIT's portfolio will consist of 115 income-producing commercial properties, including a 50% ownership interest in 42 investment properties, totaling approximately 6.1 million square feet of GLA.

PROREIT said the acquisition will further increase the portfolio's exposure to the industrial sector, bringing it to approximately 86% of GLA and 80% of base rent on a pro forma basis. The acquisition is subject to customary closing conditions and is expected to close in the third quarter of 2024, it added.

ProREIT closed unchanged on Tuesday at $5.16.