/NOT FOR DISTRIBUTION TO U.S. NEWS SERVICES OR DISSEMINATION IN THE UNITED STATES/
TORONTO, Dec. 08, 2022 (GLOBE NEWSWIRE) -- Nexus Industrial REIT (“Nexus” or the “REIT”) (TSX: NXR.UN) announced today the closing of its previously announced public offering (the “Offering”) of trust units of the REIT (the “Units”) to a syndicate of underwriters led by BMO Capital Markets, on a bought deal basis. A total of 8,225,000 Units were issued at a price of $10.30 per Unit pursuant to the Offering for total gross proceeds to the REIT of approximately $81 million which includes the gross proceeds from the exercise of the over-allotment option granted to the Underwriters to purchase 925,000 Units.
The REIT intends to use the net proceeds from the Offering to fund the acquisition of two new-build institutional-quality single tenant industrial distribution properties currently under contract (the “Acquisitions”) totaling approximately 330,000 square feet, and for general business purposes. The Acquisitions are located in the Greater Toronto Area and Greater Montreal Area and are currently under construction. The Acquisitions are estimated to be completed in the first half of 2023, upon rent commencement at each property.
The Units were offered in each of the provinces and territories of Canada, other than Québec, pursuant to a prospectus supplement filed under the REIT’s short form base shelf prospectus dated July 16, 2021, as amended by amendment no. 1 dated October 29, 2021. The terms of the Offering are described in the prospectus supplement, which is available under the REIT’s profile on SEDAR at www.sedar.com.
The Units have not been, nor will they be, registered under the United States Securities Act of 1933, as amended, (the “1933 Act”) and may not be offered, sold or delivered, directly or indirectly, in the United States, or to, or for the account or benefit of, “U.S. persons” (as defined in Regulation S under the 1933 Act), except pursuant to an exemption from the registration requirements of the 1933 Act. This press release does not constitute an offer to sell or a solicitation of an offer to buy any Units in the United States or to, or for the account or benefit of, U.S. persons.
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 potentially including the United States, and the ownership and management of its portfolio of properties. The REIT currently owns a portfolio of 113 properties (including two properties held for development in which the REIT has an 80% interest) comprising approximately 11.1 million square feet of gross leasable area. The REIT has approximately 67,266,000 Units issued and outstanding. Additionally, there are Class B LP Units of subsidiary limited partnerships of Nexus issued and outstanding, which are convertible into approximately 20,317,090 Units.
Forward Looking Statements
Certain statements contained in this news release constitute forward-looking statements which reflect the REIT’s current expectations and projections about future results, including with respect to the intended use of the net proceeds of the Offering and the timing for completion of the Acquisitions. Often, but not always, forward-looking statements can be identified by the use of words such as “plans”, “expects” or “does not expect”, “is expected”, “estimates”, “intends”, “anticipates” or “does not anticipate”, or “believes”, or variations of such words and phrases or state that certain actions, events or results “may”, “could”, “would”, “might” or “will” be taken, occur or be achieved. Forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the REIT to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. Actual results and developments are likely to differ, and may differ materially, from those expressed or implied by the forward-looking statements contained in this news release. Such forward-looking statements are based on a number of assumptions that may prove to be incorrect.
Although management believes the expectations reflected in such forward-looking statements are reasonable and represent the REIT’s internal expectations and beliefs at this time, such statements involve known and unknown risks and uncertainties and may not prove to be accurate and certain objectives and strategic goals may not be achieved. A variety of factors, many of which are beyond the REIT’s control, could cause actual results in future periods to differ materially from current expectations of events or results expressed or implied by such forward-looking statements, such as the risks identified in the REIT’s current annual information form available at www.sedar.com and other materials filed with the Canadian securities regulatory authorities.
While the REIT anticipates that subsequent events and developments may cause its views to change, the REIT specifically disclaims any obligation to update these forward-looking statements except as required by applicable law. These forward-looking statements should not be relied upon as representing the REIT’s views as of any date subsequent to the date of this news release. There can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward- looking statements. The factors identified above are not intended to represent a complete list of the factors that could affect the REIT.
For further information please contact:
Kelly Hanczyk, CEO at (416) 906-2379; or
Rob Chiasson, CFO at (416) 613-1262.