Firm Capital Property Trust Sells Montreal Industrial Facility for $27.9 Million
Toronto, March 25, 2025 – Firm Capital Property Trust (FCPT or the Trust), a leading real estate investment trust listed on the Toronto Stock Exchange under the symbol FCD.UN, is delighted to announce that its Montreal Industrial Portfolio Joint Venture (Montreal Industrial JV) has successfully entered into a binding agreement to sell a 100% interest in a well-positioned, single-tenant industrial facility. The property, spanning 159,470 square feet, is located in a strategic industrial area and is expected to fetch gross proceeds of approximately $27.9 million.
Key Aspects of the Transaction
The Trust’s portion of the gross proceeds, following the deduction of closing costs, is estimated to amount to approximately $13.8 million. The closing of the transaction is anticipated to take place during the second quarter of 2025.
Impact on Firm Capital Property Trust
This strategic sale is part of FCPT’s ongoing efforts to optimize its portfolio and generate value for its unitholders. Proceeds from the sale will be used to further enhance the Trust’s financial position and support its growth initiatives. The transaction is also expected to contribute positively to FCPT’s funds from operations and distributable cash per unit in the year following the sale.
Global Implications
The sale of the Montreal industrial facility by Firm Capital Property Trust is a reflection of the growing investor interest in the industrial real estate sector, particularly in North America. As e-commerce continues to thrive and businesses increasingly rely on efficient logistics and supply chain networks, the demand for industrial space is expected to remain strong. This trend is likely to benefit real estate investment trusts like FCPT that are well-positioned to capitalize on these market dynamics.
Additional Insights
- According to a recent report by CBRE, the industrial sector accounted for 22% of all commercial real estate investment in North America in 2024, with demand expected to remain robust in the coming years.
- The sale of the Montreal industrial facility is not an isolated event; other real estate investment trusts have also announced similar transactions in recent months, underscoring the sector’s appeal to investors.
- The industrial real estate market is not only attractive to real estate investment trusts but also to private equity firms and other institutional investors, who are increasingly allocating capital to this sector.
Conclusion
Firm Capital Property Trust’s sale of a single-tenant, 159,470 square foot industrial facility in Montreal for approximately $27.9 million is a strategic move that is expected to generate significant proceeds for the Trust. The transaction underscores the growing investor interest in the industrial real estate sector, particularly in North America, as businesses continue to prioritize efficient logistics and supply chain networks. This trend is likely to benefit real estate investment trusts like FCPT that are well-positioned to capitalize on these market dynamics.
As a unitholder, you can expect the Trust to continue focusing on optimizing its portfolio and generating value for its investors. Meanwhile, on a global scale, the industrial real estate sector is poised for continued growth, with demand expected to remain strong in the coming years.
Stay tuned for more updates from Firm Capital Property Trust as it continues to execute its growth strategy and create value for its unitholders.
