The portfolio consists of nearly 3.1 million square feet of gross leasable area
PRO Real Estate Investment Trust and Crestpoint Real Estate Investments Ltd. have announced that they have entered into a venture agreement to jointly own an industrial-focused portfolio of 42 properties across Nova Scotia and New Brunswick.
The portfolio, which is comprised of nearly 3.1 million square feet of gross leasable area, includes 41 properties in Halifax and one property in Moncton.
As part of the joint venture transaction, PROREIT and Crestpoint will each acquire a 50% interest in 21 primarily industrial properties currently owned by a third party, for a total purchase price of $228 million (before closing costs).
Alongside this, PROREIT will be selling a 50% interest in 21 of its currently owned properties to Crestpoint, valued at $227 million, for a total consideration to PROREIT of approximately $113.5 million (before closing costs).
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“By joining forces with Crestpoint, a high profile institutional real estate investor, collectively we will have an opportunity to achieve meaningful operational and leasing synergies in addition to diversifying our robust industrial tenant base,” said James W. Beckerleg, president and CEO of PROREIT.
The highly desirable portfolio is a formidable addition to PROREIT’s assets, Beckerleg said.
“Given Halifax’s solid economy and tight industrial real estate market, we look forward to unlocking the significant market leasing upside embedded in these properties and to further benefit from the accretive effect that should result from the scale of this joint venture,” he added.
