TORONTO and MONTREAL, Feb. 28,
2019 /CNW/ - Nexus Real Estate Investment Trust (the "REIT")
(TSXV: NXR.UN) is pleased to announce that it has entered into
an unconditional agreement to acquire four single-tenant industrial
properties located in Fort St John,
British Columbia; Blackfalds,
Alberta; Medicine Hat,
Alberta and Estevan,
Saskatchewan. The four-property portfolio will be acquired
for a purchase price of $31,000,000
at an attractive 9.33% capitalization rate. Appraisals conducted in
December 2018 value the properties at
approximately $40,000,000. In partial
satisfaction of the purchase price, $14,763,390 of class B LP units of a subsidiary
limited partnership of the REIT will be issued to the vendor at
$2.10 per unit. This is a premium to
the current market price of the REIT's units, increasing the REIT's
market capitalization without the need to raise equity in the
public markets. The acquisition is expected to close in March.
"We are extremely pleased to announce this acquisition as part
of our continuing strategy of completing acquisitions by way of
issuing equity at a premium to the current market price. The tenant
is a strong covenant multinational company traded on the NYSE and
has lease terms ranging between 4 - 7 years. With this acquisition,
which will be highly accretive to AFFO per unit, Nexus will grow
its market cap to approximately $241
million." stated Kelly
Hanczyk, the REIT's Chief Executive Officer. I am
also pleased to announce that the REIT has entered into a
5-year lease agreement for 23,597 sf of vacant space in its
property located at 3490 Rue Griffith in St Laurent to a strong covenant company which
is publicly traded on the NYSE. This lease will commence
March 1st and fills one of
the REIT's largest vacancies, representing a significant
improvement in annual income to the REIT. Further, we are in late
stage due diligence on another acquisition with a purchase price of
$18,345,000, and hope to announce
that conditions have also been removed on this deal shortly."
The REIT also announced today that it has revised the date it
intends to release its financial results for the fourth quarter and
year ended December 31, 2018 to
before the opening of the TSX Venture Exchange on Wednesday April 3, 2019.
Management of the REIT will host a conference call at
1:00 PM Eastern Standard Time on
Wednesday, April 3, 2019 to review the financial
results and operations.
To participate in the conference call, please dial 416-915-3239
or 1-800-319-4610 (toll free in Canada and the US) at least five minutes prior
to the start time and ask to join the Nexus REIT conference
call.
A recording of the conference call will be available until
May 3, 2019. To access the recording,
please dial 604-674-8052 or 1-855-669-9658 (toll free in
Canada and the US) and enter
access code 2919.
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 66
properties comprising approximately 3.7 million square feet of
rentable area. The REIT has approximately 93,333,000 units issued
and outstanding. Additionally, there are Class B LP units of
subsidiary limited partnerships of Nexus REIT issued and
outstanding, which are convertible into approximately 19,180,000
REIT units.
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