TSX:NXR.UN - Post by User
Comment by
Larrymartin77on Oct 07, 2021 3:16pm
120 Views
Post# 33983482
RE:Nexus REIT completes buy of three distribution centres
RE:Nexus REIT completes buy of three distribution centresmidard wrote: 2021-10-04 20:01 ET - News Release
Mr. Kelly Hanczyk reports
NEXUS REIT COMPLETES $230.4MM DISTRIBUTION CENTRE ACQUISITION PREVIOUSLY ANNOUNCED
Nexus Real Estate Investment Trust completed the previously announced $230.4-million acquisition of three distribution centres on Oct. 1, 2021.
"We are pleased to be able to add these high-quality properties to our portfolio in a significantly accretive off-market transaction" commented Kelly Hanczyk, the REIT's Chief Executive Officer. "We have a strong pipeline of additional potential industrial acquisitions, liquidity to finance the acquisitions and we are in discussions with potential buyers of 3 of the REIT's Montreal area office properties. We recently filed a $50MM at-the-market prospectus supplement, which we may access in the future to help further fuel our growth. We expect to complete the previously announced $44.1MM acquisition of a 391,000 square foot London, Ontario industrial property in November, and we are in advanced stages of negotiation and due diligence with respect to additional properties we anticipate acquiring in 2021. In early 2022, we expect to close the previously announced $58.2MM acquisition of 4 industrial properties in London, Ontario."
Details of the distribution centre properties acquired:
- 2101 Fleming Road, Regina, Saskatchewan
- Single-tenant distribution centre with 1,029,675 square feet of gross leasable area ("GLA") including both cold and frozen storage situated on approximately 84 acres
- Built and renovated 2009 to 2012
- Clear heights of 37 to 42 feet
- 775 Frenette Avenue, Moncton, New Brunswick
- Single-tenant distribution centre with 124,655 square feet of GLA including both cold and frozen storage situated on approximately 15 acres
- Built 2009
- Clear heights of 42 to 46 feet
- 10 DeWare Drive, Moncton, New Brunswick
- Single-tenant distribution centre with 226,135 square feet of GLA situated on approximately 16 acres
- Built 1995 with an addition in 2005
- Clear heights of 42 to 46 feet
The properties have a weighted average remaining lease term of approximately 10.6 years and are leased to an investment grade rated company (BBB (high) / DBRS Limited; BBB / Standard and Poor's Ratings Services), under triple-net leases.
The acquisition was partially funded with the proceeds of $172,406,250 mortgage financing with a 10-year term and an interest rate of 2.84% secured against the properties.
This was only a 3% holding in my portfolio when I first entered, but because of how well its been doing I might have to trim some... Not that I want to. Currently holding 21,300 shares.... Good luck to all the longs