TORONTO and MONTREAL, Aug. 2, 2018 /CNW/ - Nexus Real Estate Investment Trust (the "REIT") (TSXV: NXR.UN) is pleased to announce that it has closed on an acquisition in Beamsville, Ontario. The REIT also recently closed on the acquisitions of industrial assets in Nisku, Alberta and Regina, Saskatchewan.
On August 1, 2018, the REIT completed the purchase of a property in Beamsville, Ontario comprised of a food court and a gas station. Tenants at the property include Tim Hortons, A&W, KFC, Dairy Queen, Subway and Pioneer. The purchase price of approximately $6.6 million was satisfied through the issuance of class B LP units of a subsidiary limited partnership of the REIT at the equivalent of $2.10 per REIT unit, a premium to the current market price of the REIT's units. The purchase was completed at a going in capitalization rate of approximately 7.2%, and the purchase price was significantly less than the recent appraised value of the property of $8.25 million. This off-market acquisition was sourced through the REIT's strategic relationship with RFA Capital Partners.
On June 27, 2018, the REIT completed the previously announced purchase of a multi-tenant industrial property in Regina, Saskatchewan for a purchase price of $6.3 million and a going in capitalization rate of approximately 7.9%. The property consists of two buildings. $2.2 million in units at $2.10 per unit were issued to the vendor as partial purchase price consideration.
The REIT also completed the previously announced acquisition of properties in Nisku, Alberta on June 7, 2018. The assets consist of two single-tenant industrial properties acquired for a purchase price of approximately $12.3 million and a going in capitalization rate of approximately 7.0%. Approximately $5.4 million in class B LP units of a subsidiary limited partnership of the REIT at the equivalent of $2.10 per REIT unit was issued to the vendor as partial purchase price consideration.
About Nexus REIT
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 65 properties comprising approximately 3.7 million square feet of rentable area. The REIT has approximately 90,170,000 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 20,827,000 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
For further information: Kelly C. Hanczyk, President and CEO at (416) 906-2379; or Rob Chiasson, CFO at (416) 613-1262