Nexus REIT Announces Acquisition Update and Planned Name


TORONTO and MONTREAL, Jan. 18, 2022 (GLOBE NEWSWIRE) — Nexus Real Estate Investment Trust (TSX: NXR.UN) (“Nexus” or the “REIT”) provides an update on the acquisition and announces its intention to change its name for Nexus Industrial REIT.

“2021 has been a very active year for the REIT. We significantly expanded our industry portfolio and completed three very successful equity offerings, raising gross proceeds of approximately $295 million and issuing 25,717,106 units, significantly increasing transaction liquidity,” said Kelly Hanczyk, Head of the management of the REIT. “This growth and our other planned industrial acquisitions bring us one step closer to becoming Canada’s next pure industrial REIT. As we have grown, we have also improved the quality of our portfolio. Today, we are announcing our intention to change our name to Nexus Industrial REIT, subject to TSX approval. Nexus started out as an industry-focused REIT and the REIT has only acquired industrial properties over the past few years. We believe the new name better reflects the nature of the REIT’s current portfolio and its strategy of being a pure play industrial REIT.

Acquisitions Update

2021

Through September 30, 2021, the REIT completed the acquisition of 16 industrial properties totaling 2.4 million square feet of gross leasable area (“GLA”) for an aggregate purchase price of $257.8 million, which represents a weighted average initial capitalization rate of 6.55. %.

As previously announced, on October 1, 2021, the REIT completed the acquisition of three distribution centers for $230.4 million, with a total of 1.4 million square feet of GLA.

On October 13, 2021, the REIT completed the $11.5 million acquisition of a 101,073 square foot GLA single-tenant industrial property located in Windsor, Ontario.

On November 1, 2021, the REIT completed the previously announced acquisition of a 391,074 square foot industrial property located at 1040 Wilton Grove Road and 961 Pond Mills Road in London, Ontario, for a contractual purchase price of $44.1 million, representing an initial capitalization rate of approximately 5.9%.

On November 19, 2021, the REIT completed the acquisition of a single-tenant Class A distribution center located in Nisku, Alberta with approximately 142,000 square feet of GLA and 18.5 acres for a purchase price of purchase of 15.25 million US dollars.

On December 9, 2021, the REIT completed the previously announced acquisition of a 50% interest in a new automated grocery fulfillment center located in Pointe-Claire (Montreal), Quebec, for $98.2 million. of dollars. The 309,000 square foot Class A property (plus 186,000 square feet of mezzanine) is sole-tenanted by a subsidiary of Empire Company Limited.

On December 30, 2021, the REIT completed the acquisition of an approximately 100,000 square foot single-tenant distribution center located in London, Ontario, for a purchase price of $12.55 million.

In total, the REIT acquired 24 industrial properties in 2021, adding approximately 4.7 million square feet of GLA for an aggregate purchase price of $684.5 million, representing a weighted average capitalization rate of 5 .77%.

2022

On January 12, 2022, the REIT completed the $28 million acquisition of an approximately 180,000 square foot multi-tenant industrial property with 22 acres of excess land located in Regina, Saskatchewan.

The REIT is under contract to acquire by the remainder of 2022:

  • A newly constructed distribution center of approximately 100,000 square feet located in the Montreal, Quebec area for a purchase price of $28.9 million, scheduled to close on February 1, 2022.
  • An approximately 210,000 square foot industrial warehouse located in Edmonton, Alberta for a purchase price of $38.2 million, scheduled to close on February 7, 2022.
  • Two industrial properties located in Edmonton, Alberta with a total GLA of approximately 550,000 square feet for a purchase price of $91 million.
  • A 72,420 square foot industrial property in Edmonton, Alberta for $14.75 million.
  • 3 properties located in London, Ontario with a total GLA of approximately 340,000 square feet for approximately $35.7 million.

The weighted average capitalization rate of the building acquired on January 12, 2022 and the buildings under contract above is 5.12%.

2023

The REIT is under contract to acquire:

  • A newly constructed distribution center of approximately 550,000 square feet in Ontario for a purchase price of $116.5 million. The building is leased on a long-term basis to a prime tenant. The building is currently under construction and the acquisition is expected to be finalized in early 2023.
  • An approximately 325,000 square foot industrial building including a newly constructed addition of approximately 175,000 square feet in London, Ontario for a purchase price of approximately $50.6 million. The addition is currently under construction and the acquisition is expected to be completed in early 2023. The purchase price represents a going-in capitalization rate of 6.0%.

Planned name change

The REIT today announced its intention to change its name to Nexus Industrial REIT, subject to TSX approval. Nexus believes that the new name better reflects the nature of the REIT’s current portfolio and its strategy of acquiring quality industrial assets located in primary and secondary markets across Canada.

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 the United States, as well as on the ownership and management of its property portfolio. The REIT currently owns a portfolio of 98 properties representing approximately 9.3 million square feet of gross leasable area. The REIT has approximately 57,325,000 Units issued and outstanding. In addition, there are Class B limited partnership units of subsidiary limited partnerships of Nexus issued and outstanding, which are convertible into approximately 19,665,000 units.

For more information, please contact:

Kelly Hanczyk, CEO at (416) 906-2379; Where
Rob Chiasson, Chief Financial Officer at (416) 613-1262.

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