03:21 PM EDT, 04/08/2025 (MT Newswires) -- Nexus Industrial REIT (NXR-UN.TO) Tuesday announced the sale of its 50% ownership interest in 15 retail buildings located in Quebec for $47 million and one office building also located in Quebec for $4 million, representing cap rates on in-place rents of 6.8% and 9.5% respectively.

The REIT said it intends to use the net proceeds from the dispositions to repay existing indebtedness on its credit facility and to fund development projects.

"These sales mark the substantial completion of our transition to a pure-play, Canada-focused industrial REIT," said CEO Kelly Hanczyk. "Over the past five years we have successfully re-focused and grown Nexus to be a scale pure-play industrial REIT, with a portfolio of high-quality industrial properties tenanted by first-class lessees and geographically diversified within Canada. We will use the sale proceeds to reduce debt and to complete our two ongoing development projects that will add $6.8 million of annual stabilized NOI after completion in the second quarter, representing an unlevered 9.7% return on development costs.

"We have also had an excellent start to our 2025 leasing," continued Hanczyk. "We have already renewed over 80% of our expiring GLA, including two value-add renewals that will contribute another $2.3 million to NOI this year and increasing thereafter."

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