pcNewsWire – Nexus Real Estate Investment Trust (TSX-V: NXR.UN) closed previously announced public offering for $55 million and con-current private placement with RFA Nobel Limited Partnership and its investors for $15 million.
The public offering was conducted through a syndicate of underwriters co-led by Desjardins Capital Markets and National Bank Financial Inc.
Net proceeds from the public offering and private placement will be used to partially finance the previously announced acquisition of a 100% interest in two properties and a 50% interest in 24 properties located throughout the Greater Montreal Area, the Greater Quebec City Area and New Brunswick.
News Release
Nexus REIT Announces Closing of $55 Million Offering and $15 Million Private Placement
/NOT FOR DISTRIBUTION IN THE UNITED STATES OR OVER UNITED STATES WIRE SERVICES/
TORONTO and MONTREAL, June 30, 2017 /CNW Telbec/ – Nexus Real Estate Investment Trust (TSXV: NXR.UN) (“Nexus” or the “REIT”) announced today the closing of its previously announced public offering of 26,200,000 trust units of the REIT (“Units”) for gross proceeds to the REIT of approximately $55.0 million (the “Offering”). The Offering was conducted through a syndicate of underwriters co-led by Desjardins Capital Markets and National Bank Financial Inc. and including Echelon Wealth Partners Inc., GMP Securities L.P., TD Securities Inc., Canaccord Genuity Corp., Industrial Alliance Securities Inc., Manulife Securities Incorporated and Laurentian Bank Securities Inc., on a bought deal basis.
Concurrent with the Offering, RFA Nobel Limited Partnership and its investors purchased 7,150,000 Units at a price of $2.10 per Unit, on a non-brokered private placement basis, for gross proceeds to the REIT of approximately $15.0 million (the “Concurrent Private Placement”). The Units issued pursuant to the Concurrent Private Placement are subject to a statutory hold period that will expire on November 1, 2017.
The REIT intends to use the net proceeds from the Offering and the Concurrent Private Placement to partially finance the previously announced acquisition of a 100% interest in two properties and a 50% interest in 24 properties located throughout the Greater Montreal Area, the Greater Quebec City Area and New Brunswick, comprising an aggregate of 1,531,574 square feet of gross leasable area at the REIT’s proportionate interest, from vending entities (the “Sandalwood Sellers”) associated with and/or related to Sandalwood Management Inc. for an aggregate purchase price of approximately $147.0 million (the “Acquisition”). The remainder of the purchase price and related expenses of the Acquisition are expected to be satisfied by a combination of (i) approximately $75.7 million of assumed debt (at the REIT’s proportionate interest) from mortgages relating to the acquisition properties, (ii) a new first mortgage on the acquisition property located in New Brunswick with a principal amount of approximately $8.5 million and (iii) the issuance of 952,381 Units to certain of the Sandalwood Sellers at $2.10 per Unit representing an aggregate of approximately $2.0 million worth of Units. The Acquisition is expected to close on July 4, 2017.
About Nexus Real Estate Investment Trust
Nexus is a growth oriented real estate investment trust focused on increasing unitholder value through the acquisition, ownership and management of industrial, office and retail properties located in primary and secondary markets in North America. The REIT currently owns a portfolio of 36 properties comprising approximately 2.0 million square feet of rentable area. Nexus REIT has approximately 53,699,067 units issued and outstanding. Additionally, there are approximately 6,024,065 Class B LP units of subsidiary limited partnerships of Nexus REIT issued and outstanding.
