Nexus REIT Announces Closing of $162.6 Million Bought Deal Treasury and Secondary Equity Offering

Oakville, Ontario, CANADA


/NOT FOR DISTRIBUTION TO U.S. NEWS SERVICES OR DISSEMINATION IN THE UNITED STATES/

TORONTO and MONTRÉAL, Nov. 22, 2021 (GLOBE NEWSWIRE) -- Nexus Real Estate Investment Trust (“Nexus REIT” or the “REIT”) (TSX: NXR.UN) announced today the closing of its previously announced public treasury and secondary offering (the “Offering”) of trust units of the REIT (the “Units”) to a syndicate of underwriters led by BMO Capital Markets and Desjardins Capital Markets (collectively, the “Underwriters”), on a bought deal basis. A total of 12,650,000 Units were sold at a price of $12.85 per Unit pursuant to the Offering.

The Offering consisted of a treasury offering by the REIT of 11,543,356 Units for gross proceeds to the REIT of approximately $148 million (the “Treasury Offering”), which includes gross proceeds from the exercise in full of the over-allotment option granted to the Underwriters to purchase 1,650,000 Units, and a secondary offering by the vendor of the REIT’s Richmond, British Columbia property (the “Selling Unitholder”) under which 1,106,644 Units previously issued to the Selling Unitholder were sold for gross proceeds to the Selling Unitholder of approximately $14 million (the “Secondary Offering”).

The REIT intends to use the net proceeds from the Treasury Offering to fund the REIT’s future acquisitions and for general corporate purposes. The REIT did not receive any proceeds from the Secondary Offering.

The Units were offered in each of the provinces and territories of Canada pursuant to a prospectus supplement dated November 17, 2021 filed under Nexus’ 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 Real Estate Investment Trust

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 95 properties comprising approximately 8.7 million square feet of gross leasable area. Following completion of the Offering, the REIT has approximately 57,282,000 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 19,663,000 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 statements about the Offering and the anticipated use of proceeds from the Treasury Offering. 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.

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 C. Hanczyk, CEO at (416) 906-2379; or
Rob Chiasson, CFO at (416) 613-1262.