Nexus Industrial REIT sells six office properties in Montreal
- Nexus Industrial REIT sold its 50% interest in six office buildings in Montreal, totaling 143,223 square feet.
- The proceeds will be used to repay existing mortgages and reduce debt on the REIT's credit facility.
- This sale is part of a broader strategy to focus on industrial assets, which now represent 94% of the REIT's NOI.
On September 11, 2024, Nexus Industrial REIT announced the sale of its 50% ownership interest in six office buildings in Montreal, totaling 143,223 square feet of gross leasable area. This decision aligns with the REIT's strategy to focus on industrial assets, which now account for 94% of its net operating income (NOI) on a proforma basis. The CEO, Kelly Hanczyk, emphasized the importance of this sale in transitioning away from legacy office and retail properties. The proceeds from the sale will be utilized to repay existing first mortgages associated with the properties and to reduce the indebtedness on the REIT's credit facility. Nexus is also targeting asset sales of approximately $110 million in the latter half of 2024, which includes the divestment of non-core industrial assets. In addition to the property sale, Nexus Industrial REIT has successfully leased 109,000 square feet of its Titan Park industrial property in Regina, SK, with a 10-year lease set to commence on February 1, 2025. This property, completed in April 2024 at a cost of $48 million, is projected to generate an annual stabilized NOI of $3.8 million, surpassing initial expectations. Furthermore, the REIT has extended its $70 million credit facility with ATB Financial, which is secured and committed, maturing on September 15, 2025. This facility is designed to support general corporate purposes and reflects the REIT's ongoing efforts to strengthen its financial position as it pivots towards a more industrial-focused portfolio.