/NOT FOR DISTRIBUTION IN THE UNITED STATES OR OVER UNITED STATES WIRE SERVICES/
TORONTO and MONTREAL, June 30,
2017 /CNW Telbec/ - Nexus Real Estate Investment Trust
(TSXV: NXR.UN) ("Nexus" or the "REIT") announced
today the closing of its previously announced public offering of
26,200,000 trust units of the REIT ("Units") for gross
proceeds to the REIT of approximately $55.0
million (the "Offering"). The Offering was conducted
through a syndicate of underwriters co-led by Desjardins Capital
Markets and National Bank Financial Inc. and including Echelon
Wealth Partners Inc., GMP Securities L.P., TD Securities Inc.,
Canaccord Genuity Corp., Industrial Alliance Securities Inc.,
Manulife Securities Incorporated and Laurentian Bank Securities
Inc., on a bought deal basis.
Concurrent with the Offering, RFA Nobel Limited Partnership and
its investors purchased 7,150,000 Units at a price of $2.10 per Unit, on a non-brokered private
placement basis, for gross proceeds to the REIT of approximately
$15.0 million (the "Concurrent
Private Placement"). The Units issued pursuant to the
Concurrent Private Placement are subject to a statutory hold period
that will expire on November 1,
2017.
The REIT intends to use the net proceeds from the Offering and
the Concurrent Private Placement to partially finance the
previously announced acquisition of a 100% interest in two
properties and a 50% interest in 24 properties located throughout
the Greater Montreal Area, the
Greater Quebec City Area and
New Brunswick, comprising an
aggregate of 1,531,574 square feet of gross leasable area at the
REIT's proportionate interest, from vending entities (the
"Sandalwood Sellers") associated with and/or related to
Sandalwood Management Inc. for an aggregate purchase price of
approximately $147.0 million (the
"Acquisition"). The remainder of the purchase price and
related expenses of the Acquisition are expected to be satisfied by
a combination of (i) approximately $75.7 million of assumed debt (at the REIT's
proportionate interest) from mortgages relating to the acquisition
properties, (ii) a new first mortgage on the acquisition property
located in New Brunswick with a
principal amount of approximately $8.5
million and (iii) the issuance of 952,381 Units to certain
of the Sandalwood Sellers at $2.10
per Unit representing an aggregate of approximately $2.0 million worth of Units. The Acquisition is
expected to close on July 4,
2017.
About Nexus Real Estate Investment Trust
Nexus is a growth oriented real estate investment trust focused
on increasing unitholder value through the acquisition, ownership
and management of industrial, office and retail properties located
in primary and secondary markets in North
America. The REIT currently owns a portfolio of 36
properties comprising approximately 2.0 million square feet of
rentable area. Nexus REIT has approximately 53,699,067 units issued
and outstanding. Additionally, there are approximately 6,024,065
Class B LP units of subsidiary limited partnerships of Nexus REIT
issued and outstanding.
Forward-Looking Statements
Certain information in this press release contains
forward-looking information within the meaning of applicable
securities laws (also known as forward-looking statements) which
reflect the REIT's current expectations and projections about
future results, including statements made or implied relating to
the REIT's objectives, strategies to achieve those objectives, the
REIT's beliefs, plans, estimates, projections and intentions, and
similar statements concerning anticipated future events, results,
circumstances, performance or expectations that are not historical
facts. Forward looking statements generally can be identified by
words such as "outlook", "objective", "may", "will", "expect",
"intend", "estimate", "anticipate", "believe", "should", "plans",
"project", "budget" or "continue" or similar expressions suggesting
future outcomes or events. Such forward looking statements reflect
the REIT's current beliefs and are based on information currently
available to management at the time such statements are made.
Examples of such statements in this press release include, but are
not limited to, statements with respect to: the intended use of
proceeds from the Offering and the Concurrent Private Placement,
the timing and completion of the Acquisition and the sources of
payment of the purchase price for the Acquisition. Forward-looking
statements involve known and unknown risks, uncertainties and other
factors which may cause the actual results, performance or
achievements of the REIT to be materially different from any future
results, performance or achievements expressed or implied by the
forward-looking statements. Actual results and developments are
likely to differ, and may differ materially, from those expressed
or implied by the forward-looking statements contained in this
press release. Such forward-looking statements are based on a
number of assumptions that may prove to be incorrect, including,
but not limited to: the ability of the REIT to collect rent from
its tenants; the continuing concentration of the REIT's tenants;
the fulfillment by tenants of their lease responsibilities as well
as their capital expenditures and environmental remediation
responsibilities; the ability of the REIT to obtain necessary
financing or to be able to implement its business strategies; the
level of activity in the industrial and/or other commercial real
estate markets in each geographic region of Canada; and the state of the real estate
industry generally (including property ownership and tenant risks,
liquidity of real estate investments, competition, government
regulation, environmental matters, and fixed costs, recent market
volatility and increased expenses) and the economy generally. While
the REIT anticipates that subsequent events and developments may
cause its views to change, the REIT specifically disclaims any
obligation to update these forward-looking statements. These
forward-looking statements should not be relied upon as
representing the REIT's views as of any date subsequent to the date
of this press release.
Although the REIT has attempted to identify important factors
that could cause actual actions, events or results to differ
materially from those described in forward-looking statements,
there may be other factors that cause actions, events or results
not to be as anticipated, estimated or intended. There can be no
assurance that forward-looking statements will prove to be
accurate, as actual results and future events could differ
materially from those anticipated in such statements. Accordingly,
readers should not place undue reliance on forward-looking
statements. The factors identified above are not intended to
represent a complete list of the factors that could affect the
REIT. Additional factors are noted under "Financial Instruments and
Risks and Uncertainties" in the management's discussion and
analysis of the REIT for the year ended December 31, 2016 and the three months ended
March 31, 2017 and under "Risk
Factors" in the annual information form of the REIT for the year
ended December 31, 2016.
Neither TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in policies of the TSX Venture
Exchange) accepts responsibility for the adequacy or accuracy of
this release.
SOURCE Nexus Real Estate Investment Trust