PROREIT has completed its acquisition of 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,” Gordon Lawlor, PROREIT’s president and CEO, said previously.

(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 gives Parkit a 9.6% ownership interest in PROREIT, and Steven Scott, the company’s chairman, is joining 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.

Pictured: Former Parkit Winnipeg industrial property acquired by PROREIT.

Photo: Parkit