PROREIT said it announced agreements to acquire 17 industrial assets for an aggregate purchase price of $136.8 million [1].
This expansion signals a significant scaling of the trust's industrial portfolio, utilizing a combination of public and private capital to secure a larger footprint in the Canadian market.
The acquisition includes properties with a total gross leasable area of approximately 773,000 square feet [1]. While some reports indicate the assets are located in both Québec City and Winnipeg [3], other documentation specifies the assets are located in Québec City [1].
To finance the purchase, the company said it is launching a $72.5 million bought-deal public offering of trust units [1]. This public move is paired with a concurrent private placement valued at $21.7 million [1].
The trust is utilizing these multiple funding streams to cover the $136.8 million cost of the assets [1]. By combining a bought-deal offering with a private placement, the firm can quickly secure the necessary liquidity to finalize the agreements.
Industrial real estate growth often reflects broader trends in logistics and supply chain demands. The addition of 17 assets allows the trust to diversify its holdings across a larger square footage [1].
“PROREIT announced agreements to acquire 17 industrial assets for an aggregate purchase price of $136.8 million”
This strategic move demonstrates PROREIT's aggressive growth phase, leveraging the capital markets to increase its industrial asset base. The use of a bought-deal offering suggests a high level of confidence from underwriters in the trust's ability to attract investors, while the simultaneous private placement provides a targeted layer of capital to bridge the gap between the funding raised and the total acquisition cost.
