1 week ago
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OAKVILLE, Ontario, April 08, 2025 (GLOBE NEWSWIRE) -- Nexus Industrial REIT ("Nexus” or the "REIT") (TSX: NXR.UN) is pleased to announce the sale of its 50% ownership interest in 15 retail buildings located in Quebec for $47 million and one office building also located in Quebec for $4 million, representing cap rates on in-place rents of 6.8% and 9.5% respectively (together, the "Properties”). The REIT intends to use the net proceeds from the dispositions to repay existing indebtedness on its credit facility and to fund development projects.
"These sales mark the substantial completion of our transition to a pure-play, Canada-focused industrial REIT” said Kelly Hanczyk, CEO of Nexus Industrial REIT. "Over the past five years we have successfully re-focused and grown Nexus to be a scale pure-play industrial REIT, with a portfolio of high-quality industrial properties tenanted by first-class lessees and geographically diversified within Canada. We will use the sale proceeds to reduce debt and to complete our two ongoing development projects that will add $6.8 million of annual stabilized NOI after completion in the second quarter, representing an unlevered 9.7% return on development costs.
"We have also had an excellent start to our 2025 leasing,” continued Mr. Hanczyk. "We have already renewed over 80% of our expiring GLA, including two value-add renewals that will contribute another $2.3 million to NOI this year and increasing thereafter. These renewals demonstrate the quality of our portfolio and the strength of our tenant relationships.
"I am very excited with the progress that we have made, and I am confident that our strategy will continue to be rewarding for our unitholders,” concluded Mr. Hanczyk.
Details of the Properties are as follows:
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| Property Address | Building Type | GLA (sq. ft.) at Nexus' ownership interest |
| 1094-1100 boul. Des Chutes, Beauport | Retail | 16,203 |
| 1700 rue Sherbrooke, Magog | Retail | 66,916 |
| 1971 rue Bilodeau, Plessisville | Retail | 49,848 |
| 14000 boul. Henri-Bourassa, Québec City | Retail | 22,310 |
| 6700 rue St-Georges, Lévis | Retail | 21,509 |
| 10516 boul. Sainte-Anne, Ste-Anne-de-Beaupré | Retail | 44,476 |
| 9550 boul. L'Ormière, Québec City | Retail | 57,598 |
| 333 Côte Joyeuse, St-Raymond | Retail | 32,256 |
| 161 Route 230 Ouest, La Pocatière | Retail | 102,475 |
| 25 Route 138, Forestville | Retail | 28,157 |
| 2000 boul. Louis-Fréchette, Nicolet | Retail | 44,192 |
| 3856 boul. Taschereau, Greenfield Park | Retail | 106,991 |
| 250 boul. Fiset, Sorel | Retail | 58,174 |
| 8245 boul. Taschereau, Brossard | Retail | 21,617 |
| 340 rue Belvédère Sud, Sherbrooke | Retail | 86,492 |
| 1600 rue Montgolfier, Laval | Office | 27,097 |
Leasing Update
The REIT is pleased to share that it has completed an early renewal of its 265,000 sq ft industrial building located at 15745 Robin's Hill Rd, London, ON. The REIT has completed an early "blend an extend” with the existing tenant for a 3-year lease, resulting in a rent increase from $4.35psf to $12.50psf, back-dated to January 1, 2025, with 7% annual rent escalation thereafter.
At its 293,000 sq ft building located at 650 Riverview Dr., Chatham, ON, the REIT completed a lease expansion and 5-year renewal with the existing primary tenant. The primary tenant has increased their occupancy to 269,000 sq. ft. at $9.60psf effective June 1, 2025, with annual rent steps thereafter, and absorbed 31,000 sq. ft. from another tenant who is vacating March 31, 2025. The vacating tenant was paying rent of $4.50psf.
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 90 properties comprising approximately 11.7 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.
