PROREIT acquires 19-property Rexall retail portfolio for $51.6M
The portfolio consists of retail properties comprised of stand-alone stores or anchored community commercial strip centres in cities across Western Canada
Copyright © Western Investor
A Montreal-based real estate investment trust is adding 19 properties to its retail portfolio, the majority of which are located in Western Canada.
PRO Real Estate Investment Trust has entered in agreement to purchase five properties in B.C., nine properties in Alberta and four in Saskatchewan, for $51.6 million. The portfolio also includes one property in Ontario.
“This is a major transaction for PROREIT. The acquisition of this portfolio represents a significant growth milestone, bringing our total assets to more than $350 million,” said James W. Beckerleg, president and chief executive officer of PROREIT, in a release.
The portfolio brings PROREIT’s year-to-date acquisitions to over $110 million.
Rexall Pharmacy anchors fourteen of the 19 properties, while the remaining five are anchored by other major tenants such as Shoppers Drug Mart. Rexall represents 72 per cent of the portfolio’s net operating income.
“The acquisition of the Rexall portfolio follows the REIT’s strategy of investing in properties with strong national and international tenants committed to long-term leases to ensure a strong foundation underlies core cash flows,” the release states.
The properties have a gross leasable area of 172,677 square feet, with a capitalization rate of 7.1 per cent.