Nexus REIT Enters Contracts to Acquire 5 Industrial Properties
TORONTO and MONTREAL, April 16, 2021 (GLOBE NEWSWIRE) — Nexus Real Estate Investment Trust (the “REIT”) (TSX: NXR.UN) is pleased to announce that it has entered into 4 separate conditional purchase and sale agreements to acquire 5 single-tenant industrial properties for an aggregate purchase price of approximately $88,800,000.
Two of the properties are located in Southwestern Ontario; two in Alberta and one in Winnipeg, Manitoba. The 5 properties have a combined gross leasable area of approximately 609,000 square feet, and the aggregate purchase price represents a weighted average going-in capitalization rate of 6.7%.
The acquisitions are conditional on the REIT completing due diligence to its satisfaction, and one of the transactions will require TSX approval for the issuance of Class B LP Units of a subsidiary limited partnership of the REIT as partial purchase price consideration. The Class B LP Units will be priced at $8.4526 per unit, being the volume weighted average trading price of the REIT’s units for the 5 days prior to the April 16, 2021 purchase and sale agreement execution date.
The REIT anticipates that these acquisitions will be funded with cash on hand, $15,400,000 of Class B LP Units issued as consideration and with the proceeds of new mortgage financing to be placed on the properties.
“We continue to execute on our strategy to build our industrial portfolio and will put cash from our recent equity offering to work to fund acquisitions” stated Kelly Hanczyk the REIT’s Chief Executive Officer. “The properties under contract include two newly constructed buildings, have a strong tenant base and upon successful due diligence and closing, will further increase our industrial weighting to over 70% of our portfolio. In addition, we are currently in various stages of discussions on additional industrial properties and hope to be able to announce that we’ve entered into additional purchase and sale agreements shortly.”
About Nexus REIT
Nexus 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 82 properties comprising approximately 5.7 million square feet of gross leasable area. The REIT has approximately 33,478,000 Units issued and outstanding. Additionally, there are Class B LP Units of subsidiary limited partnerships of Nexus issued and outstanding, which are convertible into approximately 6,195,000 Units.
Forward Looking Statements
Certain statements contained in this news release constitute forward-looking statements which reflect the REIT’s current expectations and projections about future results. Often, but not always, forward-looking statements can be identified by the use of words such as “plans”, “expects” or “does not expect”, “is expected”, “estimates”, “intends”, “anticipates” or “does not anticipate”, or “believes”, or variations of such words and phrases or state that certain actions, events or results “may”, “could”, “would”, “might” or “will” be taken, occur or be achieved. Forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the REIT to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. Actual results and developments are likely to differ, and may differ materially, from those expressed or implied by the forward-looking statements contained in this news release. Such forward-looking statements are based on a number of assumptions that may prove to be incorrect.
While the REIT anticipates that subsequent events and developments may cause its views to change, the REIT specifically disclaims any obligation to update these forward-looking statements except as required by applicable law. These forward-looking statements should not be relied upon as representing the REIT’s views as of any date subsequent to the date of this news release. There can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements. The factors identified above are not intended to represent a complete list of the factors that could affect the REIT.
For further information please contact:
Kelly C. Hanczyk, CEO at (416) 906-2379 or
Rob Chiasson, CFO at (416) 613-1262