TSX:NXR.UN - Post by User
Comment by
Larrymartin77on Oct 21, 2021 2:24pm
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Post# 34033835
RE:RE:Pointe Claire, Quebec Acquisition
RE:RE:Pointe Claire, Quebec AcquisitionSusanBolland wrote: duplex5696 wrote: Following the announcement of its purchase of 50% of a distribution centre in Quebec where it partnered with Crombie, the reit experienced an immediate downturn. It would appear that they paid too high a price for its participation with some analysts questioning the growth potential of this investment. The deal resembles more of an income play rather than growth. Following the press release NXR encountered much higher trade volumes with a strong bias towards the negative. If any NXR holders have any more information on this acquisition I would appreciate their input.
It appears NXR.UN really paid up for this property. The CAP rate was estimated to be in the low 3'ies so on a cash neutral basis it might not be accretive for a while. Probably why it was done with a lot of debt ( aprox 60% ). It does set up for a long term relationship with Crombie though and I would consider it a "jewel" as far as quality.
Very well thought out answer Susan, thanks for your input. Sounds like you know what your talking about when it comes to REITS