InvestPlus Acquires Portfolio of 7 Buildings
InvestPlus REIT is excited to announce the addition of 7 buildings with a total of 131, 531 sq ft commercial building to its portfolio for $18,650,000 at an existing cap rate 7.56%. Lloyd Centre 1-7 is located in a newer industrial development in Lloydminster, Saskatchewan. Lloydminster has enjoyed the recent strength in oil and gas prices but is also strong in agriculture and construction. The acquisition was closed on December 16, 2021 and marks another milestone within the InvestPlus portfolio—bringing the overall commercial space under management to more than 400,000 sq ft and the Assets Under Management (AUM) to $88.65 Million. We continue to further our footprint in the Industrial Space and adding assets with strong tenant covenants. Being multiple buildings, tenants who occupy the buildings are made up of local, multi-national and global companies. Two buildings are utilized as truck storage and has a state-of-the-art truck wash bay business as well. There are opportunities for increases in rent and value creation for this portfolio which bodes well for the Trust. Best of all is how accretive this portfolio is to the Trust. More on this below.
We have also been successful securing financing for this portfolio with a large credit union. We have been able to secure financing with Servus Credit Union for a five-year term at a rate of 3.4%. These rates and terms allow InvestPlus REIT to provide their unitholders with the security of having a long-term fixed mortgage, providing predictable revenue to the Trust.
The Lloyd Centre 1-7 portfolio is projected to be accretive by an average of more than $530,000/year after unit-holder distribution for the term of the leases. This accretiveness will help sustain our distributions and help push our unit value up. The acquisition of this building also pushes our overall assets under management to $88.65M bringing our growth for 2021 up by 77.3% since December 2020.
We will continue to target strong-tenanted buildings in Western Canada that will not only provide us the performance and returns we are looking to achieve for our unit-holders but also assets and tenants that are capable of weathering the storm in these tumultuous times. Please look forward to our next acquisition announcement, coming to you soon.
InvestPlus Real Estate Investment Trust (IP REIT) is a private real estate investment fund, based in Calgary, Alberta. IP REIT is a growth-oriented real estate investment trust focused on increasing unitholder value through the acquisition, ownership and management of commercial and residential properties in primary and secondary markets in Western Canada. Management has transacted more than $150,000,000 in buildings in the provinces of BC, Alberta and Saskatchewan. The current portfolio is appraised at more than $88,000,000 and comprised of 101 rental units and more than 400,000 square feet of rentable area.
With more than 50% of our unitholders using their RRSP to invest in our Trust, find out more about our up and coming webinars where we will discuss how you too can use your registered funds or cash to invest in private commercial and residential real estate in western Canada.
Schedule a discovery call with InvestPlus REIT today.
Click HERE to find out more about InvestPlus REIT’s Current Offering Memorandum.
