Nexus Real Estate Investment Trust Announces $30 Million Bought Deal Equity Offering
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MONTREAL and TORONTO, Feb. 10, 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 sell to a syndicate of underwriters led by BMO Capital Markets and Desjardins Capital Markets (collectively, the “Underwriters”), on a bought deal basis, 3,700,000 units of the REIT (the “Units”) at a price of $8.20 per Unit (the “Offering Price”) for gross proceeds of approximately $30 million (the “Offering”). The REIT has also granted the Underwriters an over-allotment option to purchase up to an additional 555,000 Units on the same terms and conditions, exercisable at any time, in whole or in part, up to 30 days after the closing of the Offering, which, if exercised in full, would increase the gross proceeds of the Offering to approximately $34.9 million.
The REIT intends to use the net proceeds from the Offering to fund the REIT’s future acquisitions and for general corporate purposes.
“We look forward to continuing to execute on our strategic growth plan, with a focus on growing our industrial portfolio,” Kelly Hanczyk, the REIT’s Chief Executive Officer stated. “The recent and pending acquisitions of industrial properties in London and Ajax, Ontario, Moncton, New Brunswick and Edmonton, Alberta demonstrate our strong commitment to increasing the industrial weighting within the REIT’s portfolio. We continue to pursue a pipeline of potential acquisition of industrial properties to capitalize on attractive opportunities. The equity offering enables us to continue the REIT’s momentum and allows us to execute on those opportunities.”
Recent Acquisition and Operational Updates
- The REIT has a conditional agreement to acquire six industrial properties in London, Ontario which will add 1,191,184 square feet of gross leasable area (GLA) to its
portfolio for a purchase price of $103.5 million, representing a 6% going-in capitalization rate. The REIT expects to issue approximately $65.6 million in Class B LP units to the vendor at a price
of $7.64 per unit, which approximates the trading price of the REIT’s units at the time of entering into the conditional agreement. Closing is anticipated for April 1, 2021.