EDMONTON, Alberta, Feb. 25, 2025 (GLOBE NEWSWIRE) --
Melcor Real Estate Investment Trust (Melcor REIT - TSX: MR.UN) today announced the expiration of the “go shop” period provided in the previously-announced arrangement agreement dated November 24, 2024 (the “Arrangement Agreement”). Melcor REIT further announced that the REIT has completed the sale of Melcor Crossing in Grande Prairie, AB, which was listed for sale in March 2024. Melcor Crossing is a multi-building open retail power centre containing 283,000 square feet of gross leasable area developed on a 33.3-acre site. The property sold for $48.0 million ($170/sf), resulting in net cash proceeds of $16.3 million after closing costs, working capital adjustments and mortgage repayment. Cash proceeds will be used to pay down the backstop loan agreement, in accordance with its terms, with the remaining proceeds used to pay down the line of credit. A preliminary analysis prepared by the REIT indicates the sale could result in recapture of tax depreciation, resulting in additional taxable income to be allocated to unitholders. For an estimate of how this might impact taxable income, please refer to the REIT’s management information circular dated October 25, 2024 available on SEDAR+ at www.sedarplus.ca.
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