Business
Nexus Reit Announces the Acquisition of a Four-Property Industrial an Update on Leasing and Revised 2018 Year End Results Date
Nexus Reit Announces the Acquisition of a Four-Property Industrial an Update on Leasing an...
About this update from Nexus Industrial Reit
[{"type":"text","content":"\n\n\n\nNexus Reit Announces the Acquisition of a Four-Property Industrial an Update on Leasing and Revised 2018 Year End Results Date\n\n/* Style Definitions */\nspan.prnews_span\n{\nfont-size:8pt;\nfont-family:\"Arial\";\ncolor:black;\n}\na.prnews_a\n{\ncolor:blue;\n}\nli.prnews_li\n{\nfont-size:8pt;\nfont-family:\"Arial\";\ncolor:black;\n}\np.prnews_p\n{\nfont-size:0.62em;\nfont-family:\"Arial\";\ncolor:black;\nmargin:0in;\n}\n\n\n\n\n\n\n\nCanada NewsWire\nTORONTO and MONTREAL, Feb. 28, 2019\n\n\n\nTORONTO 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. \n\"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...