Nexus Real Estate Investment Trust has announced that it has entered into an agreement with a syndicate of underwriters led by BMO Capital Markets and Desjardins Capital Markets.
The contract will involve the sale, on a bought deal basis, of 3.7 million units of the Nexus REIT valued at $8.20 per unit, with expected gross proceeds of approximately $30 million.
The proceeds are slated to fund Nexus REIT’s future acquisitions, among other purposes. At present, the REIT owns a portfolio of 75 properties across North America, comprising roughly 4.4 million square feet of rentable area.
Nexus said that it has also granted the buyers an over-allotment option, which will allow them to purchase up to an additional 555,000 units up to 30 days after the closing of the offering. If exercised in full, the option would boost the proceeds to approximately $34.9 million.
“We look forward to continuing to execute on our strategic growth plan, with a focus on growing our industrial portfolio,” said Kelly Hanczyk, CEO of Nexus REIT. “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.”
Among these recent and pending acquisitions are industrial properties in London and Ajax, Ontario; Moncton, New Brunswick; and Edmonton, Alberta.