Proceeds of the transaction will partially fund the REIT’s major portfolio acquisitions
![Nexus REIT boosts public offering of trust units](https://cdn-res.keymedia.com/cdn-cgi/image/w=1000,h=600,f=auto/https://cdn-res.keymedia.com/cms/images/us/074/0270_637652968868154353.jpg)
Nexus Real Estate Investment Trust has announced the upsizing of a previously announced bought deal financing to approximately $97 million.
The transaction, which involves a syndicate of underwriters led by BMO Capital Markets and Desjardins Capital Markets, will now see the issuance of 8.625 million trust units for $11.30 per unit.
“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,” Nexus said.
Should this option be exercised, Nexus estimates the gross proceeds of the offering to reach approximately $112 million.
Read more: Nexus REIT announces series of commercial acquisitions
Nexus said that it will be using the proceeds from this offering to partially fund its acquisition of a portfolio of three distribution centres located in Saskatchewan and New Brunswick.
“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,” Nexus said. “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.”