PIRET Expands Into US
First you get lean and mean by disposing of non-core assets, then it’s pedal to the metal with new acquisitions. (It's also a decent way to train for a triathalon.) That’s the story these days with Vancouver-based PIRET, with the announcement they bought 11 properties for $235M.
We called up PIRET CEO Kevan Gorrie to talk a bit about the deal. Back in May, PIRET sold two non-core industrial properties for $6.1M, and he told us then it was all about redeploying the gain from that sale into acquisitions in core markets. Fast forward to this week. This new deal involves 11 US-based ground-level distribution centres totaling 1.9M SF. (He better have his passport in order.)
They couldn’t announce the name as yet—but the space is leased entirely to a national courier company. With the number of people shopping via e-commerce rising, PIRET is positioning itself to take advantage of “unique opportunities to own leading-edge logistics facilities in key US markets,” Kevan says. In addition, he says the equity raised for this acquisition will enable PIRET to reduce its leverage. “That’s an important step towards our goal of lowering out debt-to-GBV to 40% within the next two to three years.” In the image is one of the properties sold in May—90 Signet Dr in Toronto.
