Skyline Commercial REIT is pleased to announce the acquisition of a 9-property national portfolio of temperature-controlled warehouses through a sale/leaseback transaction with Congebec Inc. This $190M transaction closed on December 13th and represents a material, accretive transaction for the fund.
The acquisition totals 1,318,752 rentable square feet across five markets- Calgary (1), Saskatoon (1), Winnipeg (1), Montreal (GMA); (3) and Quebec City (3). The breakdown of properties is provided in the table below. This transaction is also Skyline Commercial REIT’s first acquisition in the Province of Manitoba.
|Rentable Area (sq. ft.)
|5500 72nd Ave SE, Calgary, AB
|810 60th Street E, Saskatoon, SK
|1555 Chevrier Blvd, Winnipeg, MB
|130 Rue J.A Bombardier, Boucherville, QC
|2050 Rue Bombardier, Sainte-Julie, QC
|7801 Blvd Henri-Bourassa Est, Montreal, QC
|370 Metivier Street, Quebec City, QC
|810 Godin Avenue, Quebec City, QC
|800 Fernand Dufour Street, Quebec City, QC
“Congebec has been investing heavily over the past 5 years to support its aggressive growth plan,” commented Nicholas P. Pedneault, President & CEO at Congebec. “Partnering with Skyline to reconfigure our capital and stabilize our cost structure for the next 20 years was the best decision to continue with our growth. We got to know the people at Skyline very well over this past year and there is a clear cultural fit and we are excited to create a successful partnership between the two companies.”
This acquisition follows Skyline’s core strategy of securing functionally modern industrial buildings offering long-term stable income for unitholders from tenancies with proven operating histories. Congebec will continue to lease 8 of the 9 properties on long-term leases and the ninth property at 370 Rue Metivier in Quebec City is leased by the food and pharmaceutical company Metro Richelieu Inc.
“The frozen food industry continues to enjoy double-digit annual growth in North America and Congebec’s leadership position in the logistics side of this virtually recession proof sector bodes well for their continued growth and success” shares Michael Mackenzie, President of Skyline Commercial REIT. “We have come to know the management team at Congebec through the course of discussion this past year and believe we will work extremely well together to the benefit of both our businesses.”
The acquisition’s weighted average lease term (WALT) is over 18 years and increases the entire Skyline Commercial REIT portfolio’s WALT to over 9 years. Mackenzie adds, “the deal is expected to increase the portfolio’s asset value by over 25% and on a funds from operations per Unit basis will be strongly accretive to the fund.”
Post-acquisition, Skyline Commercial REIT has 98 properties in 34 cities across ON, QC, SK, MB, and AB, with more than 6 million square feet of commercial space.
About Skyline Commercial REIT
Skyline Commercial REIT (the “REIT”) is a privately owned and managed portfolio of commercial properties, focused on acquiring industrial and logistics-centred properties along major highway corridors and transportation routes in Canada.
Skyline Commercial REIT is distributed as an alternative investment product through Skyline Wealth Management Inc. (“Skyline Wealth Management”), the exclusive Exempt Market Dealer for the REIT.
Skyline Commercial REIT is committed to providing outstanding places to do business and superior service to its tenants, while surfacing value with a goal to deliver stable returns to its investors.
To learn about additional alternative investment products offered through Skyline Wealth Management, please visit SkylineWealth.ca.
Skyline Commercial REIT is operated and managed by Skyline Group Of Companies.
For media inquiries, please contact:Jeff Stirling
Vice President, Corporate Marketing & Communications
Skyline Group of Companies
5 Douglas Street, Suite 301
Guelph, ON N1H 2S8