- What Artis REIT has agreed to sell nine industrial buildings in Arizona and Minnesota
- Why The company is aiming to reduce its leverage to below 45%
- What next The transaction is expected to close in Q3
Artis Real Estate Investment Trust has agreed to sell a portfolio of nine industrial buildings in the U.S. for $197.4m, or $173/sq ft.
Six of the properties totalling 822,000 sq ft are in the Greater Phoenix region, and the remaining three, with a combined 318,000 sq ft, are in the Twin Cities area of Minnesota. The properties have around $58.8m of mortgage financing.
The transaction is expected to close in Q3. Proceeds will be used to reduce debt.
The sale will put the company into a strong liquidity position and allow it maneuver opportunistically going forward, president and chief executive Samir Manji said in a release.
Manji added: “Along with the closing of the sale of Park 8Ninety announced earlier this month, this portfolio disposition will move us closer to achieving our goal of reducing overall leverage to below 45% and will lower our borrowing costs significantly moving forward.”
