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InvestPlus REIT Expands Portfolio to 750,000 SF With Landmark Industrial Acquisition

InvestPlus Real Estate Investment Trust (InvestPlus REIT) has reached an important growth milestone with the acquisition of The Liberty Building, a 144,516 square foot multi-tenant industrial property located in Red Deer, Alberta. This marks our largest acquisition to date!

This strategic acquisition expands the Trust’s portfolio to approximately 750,000 square feet under management and increases Assets Under Management (AUM) to approximately $112 million, reinforcing InvestPlus REIT’s long-term strategy of acquiring high-quality industrial assets with embedded value-creation potential.

A Strategic Addition to the Portfolio

The Liberty Building was acquired for $13 million at an in-place capitalization rate of 5.98%. The property is situated in a prime industrial corridor just off Gasoline Alley, directly behind Costco, in one of Red Deer’s most desirable industrial nodes.

The building’s design and location make it particularly attractive to mid-sized industrial users across key sectors such as distribution, transportation, and manufacturing.

Key property features include:

  • 144,516 square feet of multi-tenant industrial space 
  • Current occupancy of 54% across four tenants 
  • Weighted Average Lease Term (WALT): 7 years 
  • Multiple drive-in doors and dock-loading per bay 
  • Average suite size of approximately 20,000 square feet 
  • Central location within a high-demand industrial corridor 

Embedded Upside Through Active Asset Management

The Liberty Building was acquired significantly below replacement cost and current market value, largely due to its current vacancy. InvestPlus REIT views this vacancy as an opportunity to create value through active leasing and hands-on asset management.

With an established leasing presence and strong broker relationships in Red Deer, management believes the Trust is well positioned to lease the remaining space efficiently. A key competitive advantage of the property is its ability to offer lease rates approximately 30% below comparable market rents, while still delivering attractive risk-adjusted returns for unitholders.

Based on current leasing momentum:

  • Full lease-up is anticipated within 12 to 18 months 
  • The Trust currently holds an offer to lease a 22,000 square foot bay on a five-year term, which would increase occupancy to 66% 
  • At this level, the property’s DSCR would improve to approximately 1.35x 

Upon stabilization, the asset is expected to be a meaningful contributor to portfolio value, with projected NAV per unit increasing from approximately $0.50 to $1.00 per unit.

Financing Strategy and Capital Recycling

At closing, the property’s net operating income supports interim financing with a 1.09x debt service coverage ratio (DSCR).

As occupancy increases, InvestPlus REIT plans to execute a refinance strategy designed to unlock additional value:

  • At 80% occupancy, the Trust expects to refinance the asset 
  • Approximately $2.25 million is projected to be extracted to fund tenant improvements and leasing commissions 
  • An additional ~$1.5 million is expected to be available for redeployment into future acquisitions 

This approach supports continued portfolio growth while maintaining disciplined capital management.

Cash Flow Outlook

Over the next seven years, The Liberty Building is forecasted to generate average annual cash flow of approximately $400,000, after accounting for:

  • Operating expenses 
  • Mortgage interest and principal payments 
  • Investor distributions 
  • Capital reserves 

This projected cash flow aligns with InvestPlus REIT’s focus on producing consistent income while pursuing long-term value creation.

A Meaningful Milestone for InvestPlus REIT

The acquisition of The Liberty Building represents a significant step forward in the Trust’s growth trajectory. Following the transaction, InvestPlus REIT’s portfolio now exceeds $112 million in appraised value and includes more than 750,000 square feet of rentable industrial space across Western Canada.

This milestone reinforces the Trust’s strategy of acquiring well-located, income-producing industrial assets with strong tenant fundamentals and long-term growth potential.

About InvestPlus Real Estate Investment Trust

InvestPlus Real Estate Investment Trust (IP REIT) is a Calgary-based private real estate investment fund focused on increasing unitholder value through the acquisition, ownership, and management of commercial and residential real estate across primary and secondary markets in Western Canada.

With more than 40% of unitholders investing through their RRSPs, InvestPlus REIT regularly hosts investor presentations and property tours to educate Canadians on how to participate in private industrial real estate using registered funds or cash.

To learn more about InvestPlus REIT, upcoming opportunities, or to review the Trust’s current Offering Memorandum, schedule a discovery call with our team.

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