COMPLETES $11.3 MILLION IN NON-CORE PROPERTY DISPOSITIONS
TORONTO and MONTREAL, May 2, 2018 /CNW/ – Nexus Real Estate Investment Trust (the “REIT”) (TSXV: NXR.UN) is pleased to announce that it has closed on the previously announced acquisition in Richmond, BC. The REIT has also closed on the disposition of two non-core properties in Kelowna, BC and Yellowknife, NWT for an aggregate selling price of $11.3 million, and has entered into a conditional agreement to purchase two single-tenant industrial assets in Nisku, Alberta.
The Acquisitions and Disposals
- The Richmond, British Columbia asset is comprised of a single-tenant industrial building and a multi-tenant sports mall that have been acquired for a purchase price of $57.4 million with an attractive 6.5% capitalization rate. A March 2018 appraisal values the asset at approximately $81 million. In partial satisfaction of the purchase price, $20.3 million of units have been issued to the Richmond vendor at $2.10 per unit, which 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 property has repurposing potential in 12-18 months’ time that would further enhance the REIT’s AFFO per unit and net asset value per unit by adding gross leasable area and expanding the multi-tenant sports mall model.
- The Nisku, Alberta assets consist of two single-tenant industrial properties which the REIT will acquire upon completion of due diligence for a purchase price of approximately $12.3 million and a going in cap rate of 7%. The vendor will be taking approximately $5.4 million in units at $2.10 per unit as partial purchase price consideration. The acquisition remains subject to further due diligence and customary closing conditions, including TSXV and other necessary regulatory approvals.
- As previously announced, two non-core properties in Kelowna, BC and Yellowknife, NWT have been sold for a total of $11.3 million in two separate transactions; the aggregate sale price was $2.6 million greater than the total original purchase prices.
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 61 properties comprising approximately 3.7 million square feet of rentable area. The REIT has approximately 88,974,000 units issued and outstanding. Additionally, there are approximately 15,063,000 Class B LP units of subsidiary limited partnerships of the REIT issued and outstanding.
Forward Looking Statements
Certain statements contained in this new release constitute forward-looking statements which reflect the REIT’s current expectations and projections about future results. Often, but not always, forward-looking statements can be identified by the use of words such as “plans”, “expects” or “does not expect”, “is expected”, “estimates”, “intends”, “anticipates” or “does not anticipate”, or “believes”, or variations of such words and phrases or state that certain actions, events or results “may”, “could”, “would”, “might” or “will” be taken, occur or be achieved. 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 news release. Such forward-looking statements are based on a number of assumptions that may prove to be incorrect.
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 except as required by applicable law. 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 news release. 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.
Included in this news release are non-IFRS measures such as Adjusted Funds from Operations (or AFFO) that should not be construed as an alternative to net income / loss, cash from operating activities or other measures of financial performance calculated in accordance with IFRS, and may not be comparable to similar measures as reported by other issuers. Readers are encouraged to refer to the REIT’s MD&A for further discussion of the non-IFRS measures presented.
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
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