Nexus REIT Announces the Acquisition of a Three-Property Industrial Portfolio in an All-Unit Deal
TORONTO and MONTREAL, Jan. 06, 2020 (GLOBE NEWSWIRE) — Nexus Real Estate Investment Trust (the “REIT”) (TSXV: NXR.UN) is pleased to announce that it has entered into an unconditional agreement to acquire three single-tenant industrial properties located in Regina and Saskatoon, Saskatchewan which total 231,700 square feet of gross leasable area.
The three-property portfolio will be acquired for a purchase price of $17,400,000 at an attractive 7.6% going-in capitalization rate, with potential to increase the portfolio’s net operating income. Appraisals valued the properties at approximately $22,750,000. In satisfaction of the purchase price, 4,809,524 class B LP units of a subsidiary limited partnership of the REIT and 3,476,190 REIT units will be issued to the vendor at $2.10 per unit. This was a premium to the $2.05 market price of the REIT’s units on the date the purchase and sale agreement was signed. The acquisition is expected to close in early February.About Nexus Real Estate Investment TrustNexus is a growth-oriented real estate investment trust focused on increasing unitholder value through the acquisition, ownership and management of industrial, office and retail properties located in primary and secondary markets in North America. The REIT currently owns a portfolio of 69 properties comprising approximately 3.8 million square feet of rentable area. The REIT has approximately 102,110,000 units issued and outstanding. Additionally, there are Class B LP units of subsidiary limited partnerships of Nexus REIT issued and outstanding, which are convertible into approximately 18,216,000 REIT units.Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.For further information please contact:
Kelly C. Hanczyk, CEO at (416) 906-2379; or
Rob Chiasson, CFO at (416) 613-1262.