- What Proreit has agreed to buy an industrial building in suburban Montréal
- Why The deal is in line with the company’s goal of growing its industrial footprint
- What next Including this deal, Proreit’s portfolio comprises 115 income-producing commercial properties
Pro Real Estate Investment Trust has agreed to buy an industrial building near Montréal for $32.6m.
The 134,000 sq ft property is fully leased to a national logistics company under a long-term agreement with annual rent bumps and a renewal option. The valuation works out to about $243/sq ft and represents a going-in capitalization rate of 6.7%.
The transaction will be funded via a new five-year mortgage totaling $21m and proceeds from property sales. The deal is expected to close in Q3.
The property, at 2945 André Avenue in Dorval, is 2km from Montréal-Trudeau International Airport.
Including this property, Proreit’s portfolio comprises 115 income-producing commercial properties, including a 50% interest in 42 properties. The purchase is in line with the company’s goal of increasing its industrial footprint to 90% of base rent and $2bn of total asset value.
