Nexus REIT announces $17M acquisition and $70M financing

pcNewsWire – Toronto – June 5, 2107 – Nexus Real Estate Investment Trust (TSX-V: NXR.UN) has waived diligence and certain other conditions in its agreements to acquire a portfolio of assets located throughout the Greater Montreal Area, the Greater Quebec City Area, and New Brunswick from vending entities associated with and/or related to Sandalwood Management Inc., a private real estate firm dually headquartered in Austin, Texas and Montreal, Quebec.

The acquisition will be partially financed by (i) a $55 million bought deal equity financing, and (ii) a $15 million private placement with RFA Capital Partners Inc.

Nexus REIT has entered into an agreement to sell to a syndicate of underwriters co-led by Desjardins Securities Inc. and National Bank Financial Inc., on a bought deal basis, 26,200,000 units of the REIT at $2.10 per unit for gross proceeds of approximately $55 million. Concurrent with the Public Offering, RFA Capital, a leading, Canadian real estate investment and asset management firm
and the largest unitholder of the REIT, will maintain its existing pro-rata ownership in the REIT and will acquire 7,150,000 units for gross proceeds of approximately $15 million.

Nexus REIT intends to use the proceeds to partially fund the acquisition of the Sandalwood Portfolio and for general trust purposes.