Nexus Industrial REIT Announces Closing of Previously Disclosed Acquisition and Provides an Update on Its Debt
TORONTO, Nov. 01, 2023 (GLOBE NEWSWIRE) -- Nexus Industrial REIT (the "REIT") (TSX: NXR.UN) announced today that it has closed on its previously disclosed acquisition of an industrial property in London, Ontario. The $55.8 million acquisition was partially financed through the issuance of 2,394,774 Class B LP Units of a subsidiary limited partnership of Nexus at a price of $11.30 per unit in settlement of approximately $27.1 million of the purchase price.
The 336,000 square foot property includes a newly constructed 185,000 square foot addition and sits on 22.6 acres of land with the potential to add an additional 150,000 square feet of industrial development. The property was acquired at a 6.0% going-in capitalization rate. This acquisition further solidifies the REIT’s position as the dominant landlord in the London, Ontario market which is one of the strongest performing industrial markets in Canada.
Update on Debt
On September 12, 2023, the REIT upsized its existing senior unsecured credit facilities from $375 million to $525 million. The senior unsecured facilities mature on March 1, 2026. Including other secured credit facilities, the REIT now has $595.5 million of total credit facilities.
Between August and October 2023, the REIT entered into a series of interest rate swap agreements totalling $300 million and maturing between August and October 2028 subject to counterparties’ one-time optional early termination. In aggregate, including swaps previously in place, the REIT has swap agreements in place to swap variable rate borrowings under its credit facilities for fixed rates which total approximately $440 million at a fixed weighted average interest rate of 5.19% based on current applicable borrowing spreads.
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 income producing properties. The REIT currently owns a portfolio of 116 properties (including two properties held for development in which the REIT has an 80% interest) comprising approximately 12.4 million square feet of gross leasable area. The REIT has approximately 68,430,000 Units issued and outstanding. Additionally, there are Class B LP Units of subsidiary limited partnerships of Nexus issued and outstanding, which are convertible into approximately 24,615,000 Units.
For further information please contact:
Kelly C. Hanczyk, CEO at (416) 906-2379; or
Rob Chiasson, CFO at (416) 613-1262.
