Nexus REIT completes $147 million deal for commercial properties
Nexus Real Estate Investment Trust has declared the closure of a $147-million deal for a 100% interest in 2 properties and a 50% interest in 24 commercial, industrial, office, and retail properties located at New Brunswick, the Greater Quebec City Area, and the Greater Montreal Area. The acquired properties represented a total of 1,531,574 sq. ft. of gross leasable area, the Trust stated. “The purchase price of approximately $147.0 million was satisfied through the assumption of approximately $75.7 million of mortgage debt (at the REIT’s proportionate interest) and the issuance of 952,381 Units to certain of the vendors at $2.10 per unit, representing an aggregate of approximately $2.0 million worth of units, with the remainder, net of closing adjustments, settled in cash from the $55 million bought deal equity financing and $15 million private placement which closed on June 30, 2017 and from a new first mortgage secured against the acquisition property located in New Brunswick with a principal amount of $8.5 million,” Nexus announced. In a recent piece for The Motley Fool Canada, markets analyst Jacob Donnelly wrote that with the trend of steady growth and a generous influx of capital, the Canadian commercial real estate segment now stands as one of the most dependable markets to put one’s funds on. Donnelly added that real estate investment trusts focusing on commercial properties provide money-making opportunities while also being high-quality dividend stocks (as they are subject to special tax treatment).