TORONTO and MONTREAL, Aug. 24, 2020 (GLOBE NEWSWIRE) — Nexus Real Estate Investment Trust (the âREITâ) (TSXV: NXR.UN) is pleased to announce that it has waived conditions to acquire a single-tenant industrial property located in Rocky View County Alberta, within the Calgary Metropolitan Region. The property has a gross leasable area of 95,180 square feet on 10 acres of land and is fully occupied by a company that specializes in commercial building products.
The property, which was appraised at $15,100,000, will be acquired for a purchase price of $13,750,000 at a 6.75% capitalization rate. In partial satisfaction of the purchase price, 2,750,000 Class B LP Units of a subsidiary limited partnership of the REIT will be issued to the vendor at $2.00 per unit, increasing the REITâs market capitalization without the need to raise equity in the public markets. This is a substantial premium to the $1.53 market price of the REITâs units on the date the purchase and sale agreement was signed. The acquisition is expected to close in early October 2020.
Distribution Reinvestment Plan
As announced on August 13, 2020, the REIT amended its Distribution Reinvestment Plan (âDRIPâ) to increase the number of units available for issuance under the DRIP from 1,975,000 to 4,975,000. On August 14, 2020, 132,516 units were issued under the DRIP, with approximately 1.5% of those units issued to insiders of the REIT who participate in the DRIP. A total of 2,741,737 units have been issued under the DRIP since its inception in February 2014.
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 72 properties comprising approximately 4.0 million square feet of rentable area. The REIT has approximately 108,705,000 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 23,460,000 REIT units.
Forward Looking Statements
Certain statements contained in this news release constitute forward-looking statements which reflect the REITâs current expectations and projections about future results. Often, but not always, forward-looking statements can be identified by the use of words such as âplansâ, âexpectsâ or âdoes not expectâ, âis expectedâ, âestimatesâ, âintendsâ, âanticipatesâ or âdoes not anticipateâ, or âbelievesâ, or variations of such words and phrases or state that certain actions, events or results âmayâ, âcouldâ, âwouldâ, âmightâ or âwillâ 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 REITâs 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.
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.
For further information please contact:
Kelly C. Hanczyk, CEO at (416) 906-2379; or
Rob Chiasson, CFO at (416) 613-1262.