Pushing InvestPlus Commercial Portfolio to more than 100,000 sq ft Under Management
InvestPlus REIT is excited to announce the addition of a 28,962 sq ft commercial building (called ‘The Phoenix’) to its portfolio for $6,960,000. The acquisition was closed on April 30th and marks another milestone within the InvestPlus portfolio — bringing the overall commercial space under management to more than 100,000 sq ft. We continue to further our footprint and geographical diversification into Saskatoon, SK with a long-term government lease.
We have also been successful in having one of the Chartered Banks, BMO, provide us financing for this great building. We have been able to secure financing with BMO for a five-year term at a rate of 3.29% bringing our overall weighted average interest rate for all the company debt to 2.95%. These rates and terms from a Chartered Bank allow InvestPlus REIT to provide their unitholders with the security of having a long-term fixed mortgage, providing predictable revenue to the Trust. Furthermore, having BMO as our lender further confirms the steps we are taking as a trust to grow and acquire accretive properties like the Phoenix Building is a step in the right direction. We are excited to work with BMO and look forward to furthering our relationship with them in the future.
The Phoenix building is located in the heart of downtown Saskatoon and is projected to be accretive by more than $200,000/year after unit-holder distribution. The acquisition of this building also pushes our overall assets under management to $48.2M bringing our growth for 2020 up by 42% since December 2019.
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 can and are 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 $90,000,000 in buildings comprising of 21 locations in the provinces of BC, Alberta and Saskatchewan. The current portfolio is appraised at more than $47,000,000 and comprised of 139 rental units and more than 100,000 square feet of rentable area.