Real Estate Investment Trust (the "REIT") (INO-UN.TO) announced today that the REIT completed the purchase of its joint venture partner's 75% ownership interest in the Arcueil property on December 18th, 2019 . The acquisition was completed at an attractive capitalization rate of 7.7% and will provide mid-single digit accretion to 2020 and 2021 AFFO per unit estimates.

The acquisition was financed by a previously announced bought deal through the issuance of 4,835,110 trust units at a price of $10.65 per Unit, for total gross proceeds of $51.5 million . The offering closed on December 23, 2019 . 

Prior to the acquisition, the REIT owned a 25% minority interest in the office building in Arcueil, France and had an agreement in place with the REIT's joint venture co-owner to acquire the remaining 75% interest within the property. The Arcueil property is located in the Vache Noire district of the southern rim of Paris and is fully leased to the Orange Group (mobile division of France Telecom) with the existing lease set to expire in March 2023 . The property consists of 9 upper levels and a couple of basement levels, with 253 parking spaces (40 outdoor and 213 indoor) and office floor plates of roughly 2,500 sq. m.

"This acquisition illustrates the advantage of past venture acquisitions to warehouse assets and crystalize the embedded value within the portfolio. It also represents a first step in simplifying the ownership structure of the REIT, by reducing the number of joint-venture properties over the next 12 to 18 months" stated David Giraud , CEO of the REIT.


Inovalis land investment company is an unincorporated, open-ended land investment company established pursuant to a declaration of trust under the laws of the Province of Ontario . The REIT has been created for the aim of acquiring and owning office properties primarily located in France and Germany but also opportunistically in other European countries where assets meet the REIT's investment criteria. The REIT currently owns interests in office properties in both France and Germany .

Forward-Looking information

This news release contains forward-looking information within the meaning of applicable securities legislation. Forward-looking information generally are often identified by the utilization of forward-looking terminology like "outlook", "objective", "may", "will", "expect", "intend", "estimate", "anticipate", "believe", "should", "plans", or "continue", or similar expressions suggesting future outcomes or events. Forward looking information is predicated on kind of assumptions and is subject to kind of risks and uncertainties, many of which are beyond Inovalis REIT's control that might cause actual results to differ materially from people who are disclosed in or implied by such forward-looking information. These risks and uncertainties include, but aren't limited to, global and native economic and business conditions; the economic condition of tenants; our ability to refinance maturing debt; leasing risks, including those related to the power to lease vacant space; and interest and currency rate functions. The REIT's objectives and forward-looking statements are supported certain assumptions, including that the Canadian and European economies remain stable, interest rates remain stable, conditions within the important estate market remain consistent, competition for acquisitions remains according to this climate which the capital markets still provide ready access to equity and/or debt. All forward-looking information during this news release speaks as of the date of this news release. Inovalis REIT doesn't undertake to update any such forward-looking information whether as a results of latest information, future events or otherwise except as required by law. Additional information about these assumptions and risks and uncertainties is contained within the REIT's filings with securities regulators, including its latest annual information form and MD&A.