Nexus REIT concludes acquisition contracts for 2 industrial buildings for $ 56,100,000 Toronto Stock Exchange: NXR-UN.TO
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 two purchase and sale agreements separate conditionalities 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 initial capitalization rate of 6.0%.
Acquisitions are conditional on the REIT performing due diligence to its satisfaction, and one of the transactions will require the approval of the TSX and unitholders for the issuance of Class B LP units of a subsidiary. of the REIT’s limited partnership as partial consideration for the purchase price. The price of the Class B LP units will be set at $ 8.6278 per unit, i.e. the volume-weighted average price of the REIT’s units for the 5 days preceding the date of signing of the purchase and sale agreement. April 26, 2021.
The REIT expects these acquisitions to be funded with cash on hand, $ 28,500,000 of issued Class B limited partnership units, assumed mortgage financing and proceeds from new mortgage financing. to be placed on the properties. The London, Ont. Acquisition is expected to close on November 1st and the Edmonton acquisition on July 4e.
“The seller of the London, Ontario building we contracted with is the same seller we acquired six industrial properties from earlier this month,” said Kelly Hanczyk, CEO of the REIT. “We are very happy to be working with this vendor on another transaction, and we hope this relationship will lead to the sale of more properties to the REIT in the future. The Edmonton property is a single tenant property with a solid tenancy. We have other industrial properties in our acquisition pipeline and are on track to meet or exceed our stated short-term goal of increasing our industrial weighting to 75%. “
About Nexus REIT
Nexus is a growth-oriented real estate investment trust that aims to increase value for unitholders through the acquisition, ownership and management of industrial, office and retail properties located in primary and primary markets. secondary in North America. The REIT currently has a portfolio of 82 properties representing approximately 5.7 million square feet of gross leasable area. The REIT has approximately 33,478,000 units issued and outstanding. In addition, there are Class B LP units of subsidiaries of limited partnerships of Nexus issued and outstanding, which are convertible into approximately 6,195,000 units.
Certain statements contained in this press release constitute forward-looking statements that reflect the REIT’s current expectations and projections with respect to future results. Often, but not always, forward-looking statements can be identified by the use of words such as “expects”, “expects” or “does not expect”, “is expected”, “believes”, “a l ‘intention’, “anticipates” or “does not anticipate”, or “believes”, or variations of these words and expressions or declares that certain actions, events or results “could”, “could”, “would”, ” could ”or“ will ”be undertaken, occur or be achieved. Forward-looking statements involve risks, uncertainties and other known and unknown factors that may cause the REIT’s actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied. by 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 press release. These forward-looking statements are based on a number of assumptions which may prove to be incorrect.
Although the REIT anticipates that subsequent events and developments could change its views, the REIT expressly 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 views of the REIT as of a date subsequent to the date of this press 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. Therefore, readers should not place undue reliance on forward-looking statements. The factors mentioned above are not intended to represent a complete list of factors that could affect the REIT.
For more information, please contact:
Kelly C. Hanczyk, CEO at (416) 906-2379 or
Rob Chiasson, CFO at (416) 613-1262.