Elad Canada, has completed a takeover bid of Agellan Commercial Real Estate Investment Trust (REIT) for over CAD $400 million.
Agellan’s portfolio of 44 properties are distributed throughout 11 high growth urban markets in the United States. The portfolio constitutes approximately 6 million sq. ft. of industrial and office properties, with an annual NOI of approximately CAD $53 million and an asset value of approximately CAD $680 million, reflecting a 7.8 per cent cap rate on the overall transaction.
“The acquisition is an important milestone for Elad Canada and a strategic step toward a continued increase of our footprint in the income-producing properties segment,” said Elad Canada CEO Rafael Lazer in a press release.
Before the acquisition, Elad Canada was the largest unit holder of the REIT holding approximately 19 per cent of the units.
Approximately 85 per cent of the REIT’s assets are classified as light industrial properties, which include, flex and show room, logistics and distribution centres. The remainder of the portfolio are office buildings. The current occupancy rate for the properties is approximately 97 per cent.