- Nexus REIT (NXR.UN) has entered into contracts to acquire two industrial properties for C$56.1 million
- The properties are located in London, Ontario and Edmonton, Alberta, respectively
- Their combined gross leasable area is approximately 496,000 square feet
- The aggregate purchase price represents a weighted average going-in capitalization rate of 6 per cent
- Nexus expects to fund the acquisitions with cash on hand, mortgage financing and $28.5 million of Class B LP Units
- The Edmonton acquisition is set to close on July 4, 2021 while the London acquisition is set to close on November 1, 2021
- Nexus REIT owns and manages 82 industrial, office and retail properties across North America
- Nexus REIT (NXR.UN) is up by 1.14 per cent and is currently trading at $8.90 per share
Nexus REIT (NXR.UN) has entered into contracts to acquire two industrial properties for C$56.1 million.
The properties are located in London, Ontario and Edmonton, Alberta, respectively.
Their combined gross leasable area is approximately 496,000 square feet.
The aggregate purchase price represents a weighted average going-in capitalization rate of 6 per cent.
Nexus expects to fund the acquisitions with cash on hand, $28.5 million of Class B LP Units, assumed mortgage financing and the proceeds of new mortgage financing on the properties.
One of the transactions requires TSX and unitholder approval to issue Class B LP Units of a subsidiary limited partnership as partial purchase price consideration. The Class B LP Units will be priced at $8.6278 per unit.
The acquisitions are conditional on Nexus completing due diligence to its satisfaction.
The Edmonton acquisition is set to close on July 4, 2021.
The London acquisition is set to close on November 1, 2021.
Kelly Hanczyk, Nexus’ CEO, commented,
“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. 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 per cent.”
Nexus REIT owns and manages 82 industrial, office and retail properties across North America.
Nexus REIT (NXR.UN) is up by 1.14 per cent and is currently trading at $8.90 per share as of 11:59 am ET.
