Entering Into $98.2 Million Purchase and Sale Agreement 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.”
https://www.globenewswire.com/news-release/2021/10/19/2316382/0/en/Nexus-REIT-Announces-Entering-Into-98-2-Million-Purchase-and-Sale-Agreement.html