PROREIT has agreed to acquire six institutional-quality industrial properties in Winnipeg from Parkit for $96.5 million in cash and stock.

The portfolio spans 678,177 square feet of gross leasable area (GLA) and is 99.7% leased to 26 tenants, with a weighted average lease term of 4.2 years.

The acquisition increases PROREIT’s exposure to the industrial sector to approximately 88% of its GLA and 83% of base rent. It also expands the trust’s Winnipeg small- and mid-bay portfolio to 22 properties and approximately 1.3 million sf of GLA.

“This accretive acquisition meaningfully expands our industrial footprint in Winnipeg and supports our growth strategy focused on scaling our platform through high-quality industrial properties in strong secondary markets,” said Gordon Lawlor, president and CEO.

(Editor’s note: Winnipeg ranks among Canada’s major commercial real estate markets but is smaller than most of the others.)

As part of the deal, PROREIT is establishing a strategic relationship with Parkit through the issuance of approximately $40 million in units. The issuance will give Parkit a 9.6% ownership interest in PROREIT, and Steven Scott, the company’s chairman, will joint PROREIT’s board of trustees as part of the deal.

The transaction is being financed through a combination of a $63-million secured non-revolving credit facility and the unit issuance to Parkit. Closing is expected in the second quarter of 2025, pending regulatory approvals.

Pictured: Parkit Winnipeg industrial property that is included in PROREIT’s purchase agreement.

Photo: Parkit

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