Canada’s Artis REIT has agreed to sell a 12-building industrial property in the Greater Houston Area for US$234.2 million.

Winnipeg-based Artis did not disclose the buyer, but published reports have identified the purchaser as U.S. public-equity firm KKR.

Artis confirmed the deal in a news release issued in response to the published reports. The property is known as Park 8Ninety and comprises 12 buildings that total 1.82 million square feet of leasable area.

Artis said the price represents a premium to International Financial Reporting Standards and averages US$128 per square foot. The deal is subject to typical closing conditions and expected to close in the second quarter of 2024.

The property was developed in five phases between 2017 and 2022.

“If completed, the sale of Park 8Ninety would be another important step towards achieving our objective of strengthening our balance sheet, reducing debt and enhancing liquidity,” said Artis President and CEO Samir Manji.

Artis has generated upwards of $500 million from a widespread asset-sale effort that began last summer.

The REIT previously reported that it has sold $473.6 million in assets since launching a strategic review in August designed to enhance unit value. Artis indicated that most of the assets were divested in 2023 and the REIT also sold some in early 2024.

But Artis does not plan to sell its entire business after considering a complete sale as as part of the ongoing review. Artis and its advisors do not believe that a buyer is prepared to purchase the REIT at a reasonable price relative to management’s estimated net asset value of $13.96 per unit.

Photo: Artis REIT