- What Proreit inked a deal to acquire a portfolio of six industrial properties in Winnipeg
- Why Proreit and Parkit established a strategic relationship
- What next The acquisition is expected to close before July
Pro Real Estate Investment Trust has reached a deal with Parkit Enterprise to acquire a portfolio of six industrial properties in Winnipeg for $96.5m and to establish a strategic relationship.
The acquisition, which is expected to close before July, adds 678,000 sq ft of leasable area to Proreit’s portfolio in Winnipeg. It will bring the company’s small- and mid-bay portfolio in the city to 22 properties and 1.3m sq ft.
The purchase price translates to a valuation of $142/sq ft and a mid-6% capitalization rate.
As part of the deal, the two companies agreed to establish a strategic relationship whereby Parkit will own approximately 9.6% of Proreit. Parkit’s Steven Scott will join Proreit’s board of trustees following closing. Scott is chair of Parkit’s board and, separately, chief executive of StorageVault Canada — a Toronto-based self-storage management company.
The properties have average clear heights of 21 ft and comprise a mix of warehouse, light-industrial and flex industrial spaces. The portfolio is 99.7% leased to 26 tenants with a weighted average remaining term of about 4.2 years.
The six properties in Winnipeg are:
- 1725 Inkster Boulevard (269,000 sq ft)
- 1345 Redwood Avenue (112,000 sq ft)
- 2030 Notre Dame Avenue (108,000 sq ft)
- 961-975 Sherwin Road (83,000 sq ft)
- 310 De Baets Street (74,1000 sq ft)
- 90-120 Paramount Road (33,000 sq ft)
Proreit is a Montréal-based, open-ended real estate investment trust with a strong industrial focus in secondary markets.
Parkit Enterprise is an industrial real estate company headquartered in Toronto.
