Nexus Industrial REIT has announced the sale of its 50% ownership stake in its final office properties in Old Montreal.

With the divestment, Nexus is exiting the office sector. Despite its name, the REIT has held office properties.

Old Montreal is a historic district within Montreal. The divested assets include both an office building and a mixed-use property. This sale marks a pivotal step for Nexus as it advances its strategy to focus exclusively on industrial, said the organization.

“The sale of these legacy buildings closes the chapter on Nexus’ ownership of office buildings in the Old Montreal port, advancing our strategy as a Canada-focused pure-play industrial REIT,” said Kelly Hanczyk, CEO of Nexus.

The REIT, which already derives 94% of its net operating income from industrial assets, is further concentrating its industrial portfolio with plans to sell its remaining retail properties. Together with the sale of non-core industrial assets, the REIT expects to reach approximately $110 million in asset sales by the end of 2024.

The properties sold include an 18,717-square-foot building at 425 rue Guy and a 19,855-sf property at 63 rue des Brésoles. Proceeds from the sales will go toward repaying debt on Nexus’ credit facility.

Additionally, Oakville, Ont.-based Nexus has sold 11 acres of vacant land in Fort St. John, B.C., for $2.4 million. The REIT also intends to use the proceeds to pay down the credit facility.

Pictured: Office building at 425 Rue Guy in Montreal.

Photo: Nexus Industrial REIT