Nexus Industrial REIT Announces the Sale of Six Legacy Office Properties, Lease Update and Credit Facility Extension
TORONTO, Sept. 11, 2024 (GLOBE NEWSWIRE) -- Nexus Industrial REIT (“Nexus” or the “REIT”) (TSX: NXR.UN) is pleased to announce the sale of its 50% ownership interest in six office buildings located in Montreal with gross leasable area of 143,223 square feet (the “Properties”).
“The sale of these legacy office buildings furthers our strategy as a Canada-focused pure-play industrial REIT” said Kelly Hanczyk, CEO of Nexus Industrial REIT.
“Industrial assets now contribute 94% of our NOI on a proforma basis, and our industrial concentration will rise as we complete the disposition of our remaining legacy office and retail portfolios over the coming months. Combined with the sale of certain non-core industrial assets, we are targeting asset sales of approximately $110 million in the second half of 2024.”
The REIT intends to use the net proceeds, after repayment of the existing first mortgages related to the Properties, to repay existing indebtedness on its credit facility.
Details of the Properties are as follows:
| Property Address | GLA (sq. ft.) at Nexus’ ownership interest |
| 353 rue St-Nicolas, Montréal | 16,946 |
| 410 rue St-Nicolas, Montréal | 77,466 |
| 360 rue Notre-Dame Ouest, Montréal | 14,810 |
| 321 rue de la Commune, Montréal | 5,751 |
| 329 rue de la Commune, Montréal | 10,514 |
| 127, 137 & 145 rue St-Pierre, Montréal | 17,736 |
Lease Update
The REIT is pleased to share that it has leased the remaining 109,000 sq. ft. of its recently completed Titan Park industrial property at 905 Park St., Regina, SK for occupancy February 1, 2025. The 10-year lease is subject to annual rent escalation.
The REIT completed construction of the Titan Park industrial property April 1, 2024, for development costs of $48 million. The property is now expected to contribute annual stabilized NOI1 of $3.8 million, exceeding the original investment plan.
Credit Facility Extension
The REIT has completed the extension of its existing $70 million credit facility with its existing lender, ATB Financial. The facility consists of a $70 million secured committed revolving line of credit maturing on September 15, 2025.
The facility bears interest based on short-term interest rates and is intended to provide funding for general corporate purposes.
About Nexus Industrial 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 the ownership and management of its portfolio of properties. The REIT currently owns a portfolio of 113 properties comprising approximately 13 million square feet of gross leasable area.
For further information please contact:
Kelly C. Hanczyk, CEO at (416) 906-2379; or
Mike Rawle, CFO at (647) 823-1381.
1 Non-IFRS Financial Measure. Refer to the REIT’s Management’s Discussion and Analysis for the period ended June 30, 2024 available on SEDAR at www.sedar.com
