Nexus Real Estate Investment Trust Announces Closing of $112.1 Million Bought Deal Equity Offering

/NOT FOR DISTRIBUTION TO U.S. NEWS SERVICES OR
DISSEMINATION IN THE UNITED STATES/

TORONTO and MONTREAL, Aug. 23, 2021 (GLOBE NEWSWIRE) — Nexus Real Estate Investment Trust (“Nexus” or the “REIT”) (TSX: NXR.UN) announced today the closing of its previously announced public offering (the “Offering”) of trust units of the REIT (the “Units”) to a syndicate of underwriters led by BMO Capital Markets and Desjardins Capital Markets (collectively, the “Underwriters”), on a bought deal basis. A total of 9,918,750 Units were issued at a price of $11.30 per Unit pursuant to the Offering for total gross proceeds to the REIT of $112,081,875 which includes the gross proceeds from the exercise in full of the over-allotment option granted to the Underwriters to purchase 1,293,750 Units.

The REIT intends to use the net proceeds from the Offering to partially fund the $230.4 million acquisition of a portfolio of three distribution centres located in Saskatchewan and New Brunswick, comprising total gross leasable area of approximately 1.4 million square feet and leased to a single investment grade rated company under triple net leases with a weighted average remaining lease term of approximately 10.6 years, and for general trust purposes.  

The Units were offered in each of the provinces and territories of Canada pursuant to a prospectus supplement dated August 18, 2021 filed under Nexus’ short form base shelf prospectus dated July 16, 2021. The terms of the Offering are described in the prospectus supplement, which is available under the REIT’s profile on SEDAR at www.sedar.com.

The Units have not been, nor will they be, registered under the United States Securities Act of 1933, as amended, (the “1933 Act”) and may not be offered, sold or delivered, directly or indirectly, in the United States, or to, or for the account or benefit of, “U.S. persons” (as defined in Regulation S under the 1933 Act), except pursuant to an exemption from the registration requirements of the 1933 Act. This press release does not constitute an offer to sell or a solicitation of an offer to buy any Units in the United States or to, or for the account or benefit of, U.S. persons.

About Nexus Real Estate Investment Trust

Nexus is a growth-oriented real estate investment trust focused on increasing unitholder value through the acquisition of industrial properties located in primary and secondary markets in Canada and potentially including the United States, and the ownership and management of its portfolio of properties. The REIT currently owns a portfolio of 89 properties comprising approximately 6.6 million square feet of gross leasable area. The REIT has approximately 43,767,000 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 16,400,000 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, including statements about the Offering and the anticipated use of proceeds thereof. 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.