Nexus REIT Announces Closing of $55 Million Offering and $15 Million Private Placement


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

For further information: Kelly C. Hanczyk, Co-CEO at (416) 906-2379; Jean Teasdale, Co-CEO at (514) 840-9339; or Rob Chiasson, CFO at (403) 817-9496

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