Nexus REIT Announces Acquisition Update and June Distribution

TORONTO and MONTREAL, June 16, 2021 (GLOBE NEWSWIRE) -- Nexus Real Estate Investment Trust (the "REIT") (TSX: NXR.UN) announced today an acquisition update, the June distribution, and the expected sale of a retail property located in Beamsville, Ontario.

Industrial Acquisitions Completed to Date in 2021

• March 1, 2021: acquired two industrial buildings in Edmonton, Alberta with 108,156 square feet of gross leasable area (GLA) for $14MM. The buildings are fully leased to non-oil and gas tenants. The REIT issued $7.0MM in Class B LP units to the vendor at a price of $8.20 per unit. The purchase price represented an approximately 8% going in capitalization rate.
• April 1, 2021: completed the $103.5MM acquisition of six industrial properties in London, Ontario with 1,191,184 square feet of GLA, representing a 6% going-in capitalization rate. The REIT issued 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.
• June 10, 2021: acquired a 153,052 square foot single-tenant industrial property located at 6777 Edgar Industrial Drive, Red Deer, Alberta for a purchase price of $16.3MM. FCA Canada Inc. (formerly Chrysler Canada) is the tenant, and this is their only western Canada distribution center.  
• June 11, 2021: acquired a newly constructed 130,500 square foot single-tenant industrial property located at 70 Dennis Road, St. Thomas, Ontario for a purchase price of $13.8MM. Element5 Limited Partnership is the tenant.
• June 14, 2021: acquired a 120,000 square foot, approximately 2-year old single-tenant industrial property located at 446 Jutras Drive South, Lakeshore (Windsor), Ontario for a purchase price of $14.7MM. Can Art Aluminum Extrusion LP is the tenant.
• The weighted average capitalization rate for the three most recently acquired properties is 6.7%.

Industrial Properties Under Agreements of Purchase and Sale

The REIT has a total of 5 industrial properties totalling approximately 0.9MM square feet currently under contract with 4 vendors for an aggregate purchase price of approximately $120MM, including a previously unannounced property in Edmonton, Alberta under contract for a purchase price of $19.7MM. Details of the purchase and sale agreements are as follows:

• A 391,074 square foot property located at 1040 Wilton Grove Road and 961 Pond Mills Road in London, Ontario under contract for $44.1MM, representing a going-in capitalization rate of approximately 5.9%. The purchase price is expected to be satisfied through the issuance of 3,303,275 Class B LP Units of a subsidiary limited partnership of the REIT valued at $8.6278 per unit (the volume weighted average trading price of the REIT’s units for the 5 days prior to the April 26, 2021 purchase and sale agreement execution date), and through the assumption of approximately $15.6MM of mortgage financing with a maturity date of June 28, 2028 and bearing interest at 4.26% per year. The acquisition is condition on the REIT completing due diligence to its satisfaction and TSX and unitholder approval for the issuance of the Class B LP Units.