ST. JOHN'S, NEWFOUNDLAND AND LABRADOR--(Marketwired - May 21, 2015) - Fortis Inc. ("Fortis") (TSX:FTS) announced today that a subsidiary of Slate Office REIT has agreed to acquire the commercial real estate portfolio of Fortis Properties Corporation ("Fortis Properties" or the "Company"), a wholly owned subsidiary of Fortis, for $430 million.
The portfolio comprises 2.8 million square feet of leasable space located in Newfoundland, New Brunswick and Nova Scotia. The Delta Brunswick hotel, part of the Brunswick Square office complex located in Saint John, is also included in the sale. A complete list of the properties included in the transaction is attached.
"The sale of Fortis Properties' commercial real estate is the result of a strategic review process and is consistent with our focus on our core utility business. The review process for the hotel business is ongoing." says Barry Perry, President and CEO, Fortis.
The commercial real estate transaction is subject to customary closing conditions and is expected to be completed late in the second quarter or early in the third quarter. The purchaser's financing includes a $35 million subscription by Fortis in trust units of Slate Office REIT in conjunction with a public offering.
About Slate Office REIT
Slate Office REIT is an open-ended real estate investment trust. The REIT's portfolio currently comprises 35 strategic and well-located real estate assets located primarily across Canada's major population centres containing approximately 2.9 million square feet of leasable space. More information is available at
www.slateofficereit.com.
About Fortis
Fortis is a leader in the North American electric and gas utility business, with total assets of approximately $28 billion and fiscal 2014 revenue of $5.4 billion. Its regulated utilities account for approximately 93% of total assets and serve more than 3 million customers across Canada and in the United States and the Caribbean. Fortis owns non-regulated hydroelectric generation assets in Canada, Belize and Upstate New York. The Corporation's non-utility investment is comprised of hotels and commercial real estate in Canada. For more information, visit
www.fortisinc.com or
www.sedar.com.
Fortis includes forward-looking statements in this media release within the meaning of applicable securities laws in Canada. The purpose of the forward-looking information is to provide management's expectations regarding the Corporation's future growth, results of operations, performance and business prospects and opportunities, and it may not be appropriate for other purposes. All forward-looking information is given pursuant to the safe harbor provisions of applicable Canadian securities legislation. The words "anticipates", "believes", "expects", "could", "intends", "may" and similar expressions have been used to identify the forward-looking statements which, without limitation, include those statements related to the sale of the office and retail property portfolio of Fortis Properties Corporation, the expected timing and benefits thereof, the conditions precedent to the closing of such sale and the Corporation's results of operations, performance, business prospects and opportunities. Forward-looking statements involve significant risk, uncertainties and assumptions. Certain material factors or assumptions have been applied in drawing the conclusions contained in the forward-looking statements. These factors or assumptions are subject to inherent risks and uncertainties surrounding future expectations generally. Such risk factors or assumptions include, but are not limited to, the ability to obtain approvals and to satisfy conditions to closing, the ability to realize the expected benefits of the sale, capital resources, licences and permits, environment, insurance, human resources and liquidity risk. Fortis cautions readers that a number of factors could cause actual results, performance or achievements to differ materially from the results discussed or implied in the forward-looking statements. These factors should be considered carefully and undue reliance should not be placed on the forward-looking statements. For additional information with respect to certain of these risks or factors, reference should be made to the Corporation's continuous disclosure materials filed from time to time with Canadian securities regulatory authorities. The Corporation disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
Fortis Properties' Commercial Real Estate Portfolio
Newfoundland and Labrador
Cabot Place St. John's
Fortis Building St. John's
TD Place St. John's
Fort William Building St. John's
Water Street Properties St. John's
Fortis Place St. John's
Fortis Tower Corner Brook
Marystown Mall Marystown
Millbrook Mall Corner Brook
Fraser Mall Gander
Nova Scotia
Maritime Centre Halifax
New Brunswick
Brunswick Square (including Delta Brunswick hotel) Saint John
Kings Place Fredericton
Blue Cross Centre Moncton