3 Things to Know About PROREIT’s Acquisition of Boulevard Industrial REIT
PROREIT is acquiring Toronto-based Boulevard Industrial REIT in what’s being described as a “friendly transaction” that was approved unanimously by the boards of both trusts. Here are three things to know about the deal.
1. It’s a portfolio booster
The transaction increases the scale of Montreal-based PROREIT's portfolio to over $200M in gross book value, with 32 properties and approximately 1.7M SF of GLA. Boulevard’s portfolio consists of three light industrial buildings, all in Moncton, NB. The properties are: 205 Commerce St, a 12.2k SF building (seen above); 1180 St. George Blvd, a 116.5k SF building built in 1976 and expanded in 1999; and 1070 St. George Blvd, built in 1989. The buildings are 95% occupied by 15 tenants with an average lease term of 4.65 years.
2. More in the Maritimes
The deal fattens PROREIT’s Maritimes footprint and provides increased operating efficiencies in New Brunswick, where it has 13 other properties, including 55 Technology Dr in Saint John, an office building with Xerox Canada as principal tenant, and 370 Connell St in Woodstock, a 114k SF mall on a 27-acre site. PROREIT’s properties in Moncton include 50 Plaza Blvd (above, in its former Future Shop incarnation), the only Best Buy in town; and 135 Main St, a 10k SF property with CIBC as anchor.
3. PROREIT keeps growing
PROREIT CEO James Beckerleg noted the Boulevard industrial properties—which add 237k SF GLA to its portfolio, or 10% growth —“fit closely” into an expansion strategy that's focused on achieving growth through acquisitions and moving deeper into existing markets where the REIT has a presence. In May PROREIT acquired six commercial properties in New Brunswick as part of a $40.5M deal that also marked its first foray into Toronto, with the purchase of two Etobicoke industrial sites, including 209 Carrier Dr.