- Nexus REIT (NXR.UN) has entered into contracts to acquire five industrial properties
- The company entered into four conditional agreements to acquire five single-tenant industrial properties for C$88,800,000
- The purchase price represents a going-in capitalization rate of 6.7 per cent
- Two of the properties are located in Southwestern Ontario, two in Alberta and one in Winnipeg
- The five properties have a combined gross leasable area of 609,000 square feet
- The company expects to fund the acquisitions with cash, shares and mortgage financing
- Nexus REIT owns and manages 82 industrial, office and retail properties across North America
- Nexus REIT (NXR.UN) closed the day up 0.12 per cent trading at $8.54 per share
Nexus REIT (NXR.UN) has entered into contracts to acquire five industrial properties.
The company entered into four conditional purchase and sale agreements to acquire five single-tenant industrial properties for C$88,800,000.
The aggregate purchase price represents a weighted average going-in capitalization rate of 6.7 per cent.
Two of the properties are located in Southwestern Ontario, two in Alberta and one in Winnipeg.
The five properties have a combined gross leasable area of 609,000 square feet.
One of the transactions will require TSX approval to issue Class B LP units of a Nexus subsidiary limited partnership as partial payment. The Class B LP units will be priced at $8.4526 per unit.
Nexus expects to fund the acquisitions with cash on hand, new mortgage financing and $15,400,000 of Class B LP units.
Kelly Hanczyk, Nexus’ CEO, commented,
“We continue to execute on our strategy to build our industrial portfolio and will put cash from our recent equity offering to work to fund acquisitions. The properties under contract include two newly constructed buildings, have a strong tenant base and upon successful due diligence and closing will further increase our industrial weighting to over 70 per cent of our portfolio.
In addition, we are currently in various stages of discussions on additional industrial properties and hope to be able to announce that we’ve entered into additional purchase and sale agreements shortly.”
Nexus REIT owns and manages 82 industrial, office and retail properties across North America.
Nexus REIT (NXR.UN) closed the day up 0.12 per cent trading at $8.54 per share.