Press Release

DBRS Assigns Rating to Faubourg Boisbriand Shopping Centre Holdings Inc. – Faubourg Boisbriand Power Centre Mortgage Loan

Commercial Mortgages
September 27, 2013

DBRS has today assigned a rating of BBB (low) to the 5.22% Mortgage Loan due May 1, 2021 (the Mortgage Loan), by a major Canadian financial institution in relation to a section of Faubourg Boisbriand Power Centre, 2515-3480 Des Grandes Tourelles Avenue, Boisbriand, Québec.

The Mortgage Loan was made on April 20, 2011, with an interest rate of 5.22% per annum, calculated and compounded semi-annually, not in advance, for a term maturing on May 1, 2021, with a 25-year amortization period. The Mortgage Loan had an outstanding balance of $88,095,463 as of September 1, 2013.

The Mortgage Loan is secured by a fee interest in a section of Faubourg Boisbriand, representing an area of 639,604 sq. ft. The subject property is anchored by Target, The Brick, Toys “R” Us, IGA and Déco Découverte (Home Outfitters). Faubourg Boisbriand is part of the redevelopment of the 232-acre former General Motors of Canada site.

Based on its own underwriting of the property cash flows, DBRS derived a stabilized net cash flow that is slightly lower than the year-end 2012 net cash flow of Faubourg Boisbriand Shopping Centre Holdings Inc. (the Borrower), representing a derived term DBRS debt service coverage ratio (DSCR) exceeding 1.30 times. The derived DSCR is also expected to exceed 1.40 times at the time of refinancing, as the projected amortization of the principal balance on the Mortgage Loan will most likely more than offset the projected increase in the cost of financing.

DBRS assumes that the Borrower will refinance in 2021 to pay off the principal remaining on the Mortgage Loan, and the rating considers the ability of the Borrower to refinance at the end of the Mortgage Loan term. The location, condition and the historical performance of the subject property, the derived DBRS term DSCR, the derived DBRS LTV and the amortization collectively support the BBB (low) rating.

Notes:
All figures are in Canadian dollars unless otherwise noted.

The related regulatory disclosures pursuant to the National Instrument 25-101 Designated Rating Organizations are hereby incorporated by reference and can be found by clicking on the link to the right under Related Research or by contacting us at info@dbrs.com.

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