Melcor REIT has completed the divestment of Kelowna Business Centre in Kelowna, British Columbia.

The three-storey asset was divested for CAD19.5 million, excluding disposal costs.

“This property sale enables the REIT to pay down our line of credit to free up capital for other opportunities while also achieving a good return on investment for unitholders”, said Andrew Melton, CEO of Melcor REIT.

“We bought Kelowna Business Centre in conjunction with the REIT’s initial public offering in May 2013 and sold it for a premium to our purchase price”, Melton explained.

“The property was cash flow positive while held by the REIT”, he added in a statement on the divestment.

With the divestment completed, Melcor REIT now has a portfolio of 39 properties representing approximately 3.2 million square feet of gross leasable area.

These retail, office and industrial assets are located across Alberta and in Regina, Saskatchewan and Kelowna, British Columbia.

Melcor REIT was last done on the TSX at CAD5.86.