industrial properties

Nexus REIT acquires industrial properties in Western Canada

Tuesday, March 27, 2018

Nexus Real Estate Investment Trust (Nexus REIT) is purchasing three industrial properties in Western Canada for $64 million.

The REIT has also entered into conditional agreements for the sale of two non-core properties in Kelowna, B.C. and Yellowknife, Northwest Territories, which are being sold for $11.3 million in two separate transactions. The sale price is $2.6 million greater than the total original purchase prices.

“We are extremely pleased to announce these acquisitions which we believe will not only generate increases in our AFFO per unit but should result in significant improvement in our NAV/unit once the repurposing associated with the Richmond assets is complete,” said Nexus REIT CEO Kelly Hanczyk. “The vendors realize the attractiveness of becoming long-term Nexus REIT unitholders as evidenced by a significant portion of the purchase price being paid in units (at a premium to today’s trading price).”

Nexus REIT expects to grow its market capitalization by about $22.7 million, without the need to raise equity in the public markets.

“We are currently in negotiations with several additional vendors for similar unit structured deals and hope that these are the first in a series of transactions that we will announce in the near future and complete in the second quarter,” adds Hanczyk.

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