Nexus Real Estate Investment Trust agreed to acquire a portfolio of assets for roughly C$147 million and launched a C$55 million bought-deal equity offering and a C$15 million private placement with its largest unit holder, RFA Capital Partners Inc., to partially fund the transaction.
The assets include 25 retail, office and industrial properties in Quebec and one office property in New Brunswick, spanning a total gross leasable area of roughly 2.5 million square feet. The company acquired a 100% stake in two properties while snapping up a 50% stake in 24 others, comprising an aggregate 1,531,588 square feet at Nexus' ownership interest.
The deal represents a blended going-in cap rate of about 7.3% and is anticipated to close by July 4.
The transaction will be financed through net proceeds of the offerings, a C$2 million vendor take-back of real estate investment trust units issued to the sellers as purchase consideration, assumed debt of roughly C$75.7 million, and new debt to be placed on the New Brunswick property.
The bought-deal offering comprises 26,200,000 units at C$2.10 per unit, with a 30-day overallotment option for the underwriters to acquire a further 3,930,000 units, and the private placement consists of 7,150,000 units at the offering price.
The public offering and the private placement are set to close by June 30.
Desjardins Securities Inc. and National Bank Financial Inc. co-lead the syndicate of underwriters.