- What InvestPlus REIT has acquired four buildings in Red Deer and Clairmont
- Why The properties are leased to the same tenant
- What next The deal was financed with a National Bank loan
InvestPlus REIT has purchased four industrial buildings in Alberta for $14.7m.
The properties span 92,000 sq ft. The deal closed in late December, and the purchase price translates to a capitalization rate of 7.9%. The deal brings the REIT’s total space under management to 600,000 sq ft and assets under management to $101m.
National Bank provided financing for the portfolio at a rate of 5.13% over five years.
All four buildings are leased to the same tenant, Red Deer Ironworks, a manufacturer of gas manifolds. They are at 6430 Golden West Avenue in Red Deer and 10002 84 Avenue NW in Clairmont.
InvestPlus is a private investment fund headquartered in Calgary, with more than 40% of its shareholders invested through registered retirement savings plans.
Red Deer is a city of more than 100,000 people about 135 km from both Edmonton and Calgary. Clairmont is a hamlet about 400 km northwest of Edmonton.
