Nexus REIT Enters Contracts to Acquire 2 Industrial Properties for $56,100,000
TORONTO and MONTREAL, April 27, 2021 (GLOBE NEWSWIRE) — Nexus Real Estate Investment Trust (the “REIT”) (TSX: NXR.UN) is pleased to announce that it has entered into 2 separate conditional purchase and sale agreements to acquire 2 industrial properties for an aggregate purchase price of approximately $56,100,000.
One of the properties is located in London, Ontario and one in Edmonton, Alberta. The properties have a combined gross leasable area of approximately 496,000 square feet, and the aggregate purchase price represents a weighted average going-in capitalization rate of 6.0%.
The acquisitions are conditional on the REIT completing due diligence to its satisfaction, and one of the transactions will require TSX and unitholder 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 $8.6278 per unit, being the volume weighted average trading price of the REIT’s units for the 5 days prior to the April 26, 2021 purchase and sale agreement execution date.
The REIT anticipates that these acquisitions will be funded with cash on hand, $28,500,000 of Class B LP Units issued as consideration, assumed mortgage financing and with the proceeds of new mortgage financing to be placed on the properties. The London, Ontario acquisition is expected to close on November 1st and the Edmonton acquisition on July 4th.
“The vendor of the London, Ontario property we have put under contract is the same vendor that we acquired six industrial properties from earlier this month” stated Kelly Hanczyk, the REIT’s Chief Executive Officer. “We are very excited to be working with this vendor on another deal, and we hope that this relationship will lead to more properties being vended to the REIT in the future. The Edmonton property is a single tenant property with solid tenancy. We have additional industrial properties in our acquisition pipeline and are well on our way to meet or exceed our stated near-term goal of increasing our industrial weighting to 75 percent.”
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.
