Nexus REIT has entered agreements to acquire five single-tenant industrial buildings, which would add 609,000 square feet of gross leasable area to its portfolio. The four separate deals involve two properties in southwest Ontario, two in Alberta and one in Winnipeg.
TSX approval will be required for proposed partial financing through the issuance of Class B LP units valued at approximately $15.4 million. The remainder is to be covered with cash on hand and new mortgage financing on the properties.
“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,” reports Kelly Hanczyk, Nexus REIT chief executive officer. “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 currently holds 82 properties encompassing 5.7 million square feet of leasable area. If approved, the new acquisitions will bump the portfolio’s industrial weighting to more than 70 per cent.