TORONTO and MONTREAL, Oct. 19, 2021 (GLOBE NEWSWIRE) — Nexus Real Estate Investment Trust (TSX: NXR.UN) (“Nexus” or the “REIT”) announced today that it has entered into an agreement to acquire a 50% interest in a newly constructed automated grocery customer fulfilment centre (“CFC”) strategically located in Pointe-Claire (Montreal), Quebec.
The newly built 309,000 square foot (plus 186,000 square feet of mezzanine) Class A property is located at 2400 Trans-Canada Highway in Pointe-Claire, Quebec, and is fully leased on an absolutely triple net basis to a subsidiary of Empire on a long-term basis. The purchase price is expected to be partially satisfied through the assumption of mortgage financing in the principal amount of approximately $61,500,000 with approximately 15 years remaining term, with the balance expected to be satisfied in cash. The REIT has sufficient liquidity available from its credit facilities and unencumbered properties to finance this acquisition and the other properties the REIT has under contract.
The purchase and sale agreement is conditional upon mortgage assumption and other approvals and the acquisition is expected to close in December 2021.
“We are extremely pleased to be purchasing a 50% share of a brand new, state-of-the-art CFC in one of Canada’s strongest markets.” commented Kelly Hanczyk, the REIT’s Chief Executive Officer. “This automated facility located on the island of Montreal is anchored by a long-term lease with a subsidiary of Empire, an excellent investment grade covenant. More importantly, it represents the beginning of what we believe will be a long-term relationship with Crombie REIT, one of Canada’s largest and most respected national REITs.”
About Nexus REIT
Nexus is a growth-oriented real estate investment trust focused on increasing unitholder value through the acquisition of industrial properties located in primary and secondary markets in Canada and potentially including the United States, and the ownership and management of its portfolio of properties. The REIT currently owns a portfolio of 94 properties comprising approximately 8.3 million square feet of gross leasable area. The REIT has approximately 43,835,000 Units issued and outstanding. Additionally, there are Class B LP Units of subsidiary limited partnerships of Nexus issued and outstanding, which are convertible into approximately 16,360,000 Units.
Forward Looking Statements
Certain statements contained in this news 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.
For further information please contact:
Kelly Hanczyk, CEO at (416) 906-2379; or
Rob Chiasson, CFO at (416) 613-1262.