Nexus Industrial REIT Sells Legacy Properties and Expands Operations

Author: Logan Wright Updated: 10-16-2025 09:15 AM

Nexus Industrial REIT Emphasizes Focus on Industrial Real Estate

Nexus Industrial REIT is creating a buzz in the market with its recent strategic initiatives. The company has officially offloaded a 50% stake in six office buildings, reinforcing its concentration on industrial properties. This transaction signifies a key moment, bolstering Nexus's standing as a prominent industrial REIT in Canada.

Sale of Legacy Office Properties

The sold properties account for a total of 143,223 square feet and are situated in Montreal. Kelly Hanczyk, CEO of Nexus Industrial REIT, shared his approval of this move, saying, “The sale of these legacy office buildings furthers our strategy as a Canada-focused pure-play industrial REIT.” With industrial assets now contributing 94% of their net operating income (NOI) on a proforma basis, this shift underscores a deeper commitment to industrial real estate. The company plans to continue this momentum by divesting remaining office and retail holdings, aiming for total asset sales of around $110 million by year-end.

Details on the Disposed Properties

Here are the properties mentioned in the recent announcement:

353 rue St-Nicolas - 16,946 sq. ft.
410 rue St-Nicolas - 77,466 sq. ft.
360 rue Notre-Dame Ouest - 14,810 sq. ft.
321 rue de la Commune - 5,751 sq. ft.
329 rue de la Commune - 10,514 sq. ft.
127, 137 & 145 rue St-Pierre - 17,736 sq. ft.

The net proceeds from this significant sale are expected to go towards repaying existing debts linked to the sold properties, thereby enhancing Nexus's financial health.

Update on Leasing Activities

Nexus is also thrilled to report substantial leasing progress at its Titan Park industrial property located at 905 Park St., Regina. The company has successfully leased 109,000 square feet of space, with occupancy anticipated for February 2025. This agreement spans 10 years and will include annual rent increases, reflecting the demand for top-tier industrial spaces in the area.

Overview of Titan Park

Titan Park was recently completed in April, with a total development investment of $48 million. It is expected to generate a stabilized NOI of $3.8 million per year, a yield that surpasses Nexus's initial investment expectations, signaling strong potential for future performance.

Credit Facility Extension to Support Future Growth

In addition to its strategic moves, Nexus has extended its $70 million credit facility with ATB Financial, ensuring ongoing financial flexibility and support for general corporate activities. This secured and committed revolving line of credit is set to mature in September 2025, with interest rates linked to short-term trends, making it favorable for future financial planning.

Expanding the Property Portfolio

To further enhance its strategy, Nexus is dedicated to increasing its management and ownership of industrial properties across Canada. With a current impressive portfolio of 113 properties totaling approximately 13 million square feet of gross leasable area, Nexus is firmly on a growth trajectory. Their strategy focuses on acquiring high-potential industrial properties in both major and secondary markets.

Frequently Asked Questions

What prompted Nexus Industrial REIT to sell its office properties?

The sale aligns with Nexus's strategy to concentrate on industrial assets, which now comprise 94% of their NOI.

What are the plans for the proceeds from the property sale?

The proceeds will be used primarily to repay existing debts associated with the sold properties.

When is occupancy expected for the recently leased industrial property?

Occupancy for the Titan Park industrial property is scheduled for February 1, 2025.

What financial benefits does the credit facility extension provide for Nexus?

The extension of the credit facility enhances financial stability and flexibility, supporting future growth and operational needs.

How does this move affect Nexus's overall portfolio?

Nexus aims to enhance unitholder value by expanding its industrial asset portfolio, fostering growth, and rebuilding strength in the real estate sector.

About The Author

Dedicated Author and financial expert Logan Wright here, 29 years old. After earning an economics degree, I spent a number of years working in different financial industries. My great passion is enabling everyone, from any background or experience level, to understand and be literate in financial matters.

My books and writings are centered on simplifying difficult financial ideas into doable, understandable guidance. Whether it's retirement planning, investing, or budgeting, I want to arm readers with the information they need to make wise financial choices and realize their financial objectives.

Apart from writing, I also frequently post to financial blogs and organize webinars and workshops targeted at enlightening participants about personal finance. Always, my strategy is to offer concise, doable advice that can truly improve people's lives.

Away from work, I like to read, travel, and sample new foods. My goal is to infuse everything I do with the balance that I think is essential to both financial and personal well-being. By my profession, I want to encourage and enable people to confidently and clearly take charge of their financial futures.

Contact Logan Wright privately here. Or send an email with ATTN: Logan Wright as the subject to contact@investorshangout.com.

About Investors Hangout

Investors Hangout is a leading online stock forum for financial discussion and learning, offering a wide range of free tools and resources. It draws in traders of all levels, who exchange market knowledge, investigate trading tactics, and keep an eye on industry developments in real time. Featuring financial articles, stock message boards, quotes, charts, company profiles, and live news updates. Through cooperative learning and a wealth of informational resources, it helps users from novices creating their first portfolios to experts honing their techniques. Join Investors Hangout today: https://investorshangout.com/

The content of this article is based on factual, publicly available information and does not represent legal, financial, or investment advice. Investors Hangout does not offer financial advice, and the author is not a licensed financial advisor. Consult a qualified advisor before making any financial or investment decisions based on this article. This article should not be considered advice to purchase, sell, or hold any securities or other investments. If any of the material provided here is inaccurate, please contact us for corrections.