TORONTO – Nexus Real Estate Investment Trust (TSX:NXR.UN) announced the upsizing of its previously announced bought deal financing with a syndicate of underwriters led by BMO Capital Markets and Desjardins Capital Markets. The REIT will now issue 8,625,000 trust units at a price of $11.30 per Unit for aggregate gross proceeds of approximately $97 million. In addition, the REIT has granted the Underwriters an over-allotment option to purchase up to an additional 1,293,750 Units on the same terms and conditions, exercisable at any time, in whole or in part, up to 30 days after the closing of the Offering, which, if exercised in full, would increase the gross proceeds of the Offering to approximately $112 million.
The REIT intends to use the net proceeds from the Offering to fund part of the purchase price for the acquisition of a portfolio of three distribution centres located in Saskatchewan and New Brunswick, as previously announced, and for general business purposes.
The Units under the Offering will be offered in Canada pursuant to a prospectus supplement filed under Nexus’s short form base shelf prospectus dated July 16, 2021. The Offering is expected to close on or about August 23, 2021 and is subject to customary conditions and receipt of all necessary approvals, including the approval of the Toronto Stock Exchange. The Offering is not conditional on the closing of the Distribution Centre Acquisition.
The Units have not been, nor will they be, registered under the United States Securities Act of 1933, as amended, 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.
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 89 properties comprising approximately 6.6 million square feet of gross leasable area. The REIT has approximately 33,788,000 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 16,442,000 Units.
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