TORONTO, May 14, 2024 (GLOBE NEWSWIRE) -- Virtus Capital Corporation, the asset manager of Virtus Diversified REIT is proud to announce its latest strategic move in expanding its portfolio with the acquisition of a free-standing Walmart tenanted property located in Flin Flon, Manitoba. This acquisition marks a significant milestone for Virtus Diversified REIT as it continues to strengthen its retail presence with reliable anchor tenants in strong markets across Canada. “This acquisition is a great example of our ‘make the money on the buy’ strategy,” said Aurelio Baglione, CEO of Virtus. “We originally tied up this property for $5.25 million, we walked away from the deal because I thought we could do better. I was re-approached by the broker 4 months ago and was able to negotiate a purchase price of $3.95 million. I’m thrilled to announce that the purchase has closed.”
A recent appraisal by Cushman & Wakefield assessed the market value of this property at $5.1 million. With this purchase, Virtus Diversified REIT’s Assets Under Management increased to $62.8 million based on purchase price.
Situated within a major northern retail hub and surrounded by other national retailers, the Walmart at 200 Manitoba 10 serves as a vital cornerstone for the surrounding communities. Walmart exercised its rights to extend the lease by 5 years in November 2022, further cementing the stability of the property.
With approximately 3,000 households within a 10-kilometer radius and an impressive average household income of $107,165, this retail location is strategically positioned to cater to the needs of the local community, offering an attractive investment opportunity for Virtus Diversified REIT and its stakeholders.
“We are excited to announce the acquisition of the Flin Flon Walmart property, which we were able to acquire well above current market capitalization rates (and well below replacement cost),” said Josh Will, EVP, Virtus. “By acquiring the free-standing Walmart, we're not just expanding our footprint, but also our commitment to serving communities and investors with excellence. This is exactly the type of property we are seeking to add to our portfolio – high yield with exceptional covenant, allowing us to maintain our target distribution and build a solid, recession-resilient base.”
The plaza boasts an expansive 63,439 square feet of retail space on 6.49 acres, ample parking with 373 stalls, providing a ratio of 5.88 stalls per 1,000 square feet. Constructed in 2002 and refaced in 2013 to current quality design standards, the property offers a modern and inviting atmosphere for shoppers.
Virtus Diversified REIT remains dedicated to pursuing opportunities that drive growth and create value for its unitholders. This acquisition exemplifies this commitment and reinforces Virtus Diversified REIT's position as an ascending player in the Canadian real estate market.
For more information about Virtus Diversified REIT and its investment opportunities, please visit www.vreit.ca.
About Virtus Diversified REIT
Virtus Diversified REIT is focused on acquiring quality properties in strong secondary and tertiary markets across Canada and the United States. The company’s goal is to build a strong and stable commercial, industrial, retail, and multi-unit residential portfolio, enhancing overall portfolio incomes by diversifying the tenant base and geographic location. The long-term goal is to maximize the unit value with ongoing management through future acquisitions, repositioning, and competitive financing.
Some of Virtus Diversified REIT’s anchor tenants include companies such as Walmart, Crown Corporation, BJ’s Wholesale Club, The Brick, No Frills and Dollarama.
Contact Information
Josh Will
info@vreit.ca
www.vreit.ca
