TORONTO and MONTREAL, Oct. 04, 2021 (GLOBE NEWSWIRE) -- Nexus Real Estate Investment Trust (TSX: NXR.UN) (“Nexus” or the “REIT”) announced today that it completed the previously announced $230.4MM acquisition of three distribution centres on October 1, 2021.
“We are pleased to be able to add these high-quality properties to our portfolio in a significantly accretive off-market transaction” commented Kelly Hanczyk, the REIT’s Chief Executive Officer. “We have a strong pipeline of additional potential industrial acquisitions, liquidity to finance the acquisitions and we are in discussions with potential buyers of 3 of the REIT’s Montreal area office properties. We recently filed a $50MM at-the-market prospectus supplement, which we may access in the future to help further fuel our growth. We expect to complete the previously announced $44.1MM acquisition of a 391,000 square foot London, Ontario industrial property in November, and we are in advanced stages of negotiation and due diligence with respect to additional properties we anticipate acquiring in 2021. In early 2022, we expect to close the previously announced $58.2MM acquisition of 4 industrial properties in London, Ontario.”
Details of the distribution centre properties acquired:
2101 Fleming Road, Regina, Saskatchewan
- Single-tenant distribution centre with 1,029,675 square feet of gross leasable area (“GLA”) including both cold and frozen storage situated on approximately 84 acres
- Built and renovated 2009 to 2012
- Clear heights of 37 to 42 feet
775 Frenette Avenue, Moncton, New Brunswick
- Single-tenant distribution centre with 124,655 square feet of GLA including both cold and frozen storage situated on approximately 15 acres
- Built 2009
- Clear heights of 42 to 46 feet
10 DeWare Drive, Moncton, New Brunswick
- Single-tenant distribution centre with 226,135 square feet of GLA situated on approximately 16 acres
- Built 1995 with an addition in 2005
- Clear heights of 42 to 46 feet
The properties have a weighted average remaining lease term of approximately 10.6 years and are leased to an investment grade rated company (BBB (high) / DBRS Limited; BBB / Standard and Poor’s Ratings Services), under triple-net leases.
The acquisition was partially funded with the proceeds of $172,406,250 mortgage financing with a 10-year term and an interest rate of 2.84% secured against the properties.
About Nexus REIT
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 93 properties comprising approximately 8.2 million square feet of gross leasable area. The REIT has approximately 43,835,000 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 16,360,000 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 Hanczyk, CEO at (416) 906-2379; or
Rob Chiasson, CFO at (416) 613-1262.
