Artis REIT sells 8 Calgary, Winnipeg retail assets for $222M • RENX

December 22, 2023
1 min read
2023122254 artis sunridgespectrum600

Sunridge Spectrum in Calgary. (Courtesy Artis REIT)

Artis REIT (AX.UN-T) is closing 2023 by announcing an unconditional agreement to sell eight of its Canadian retail properties comprising almost 600,000 square feet of leasable space in Calgary and Winnipeg for $222 million.

The four properties in Calgary comprise an aggregate of 293,660 square feet while the four-property Winnipeg portfolio comprises 301,539 square feet. The sale price represents a per-square-foot value of $373, the REIT states in the announcement Friday morning.

The properties combined carry approximately $80.5 million in mortgage financing.

The announcement states Artis will use proceeds from the sale to reduce debt, a goal which had been discussed by president and CEO Samir Manji during the REIT’s recent Q3 financial call with analysts and investors.

“The sale of this portfolio of Canadian retail properties is an important step towards achieving our near-term objective of strengthening our balance sheet, reducing debt and enhancing liquidity,” Manji said in Friday’s announcement. “We continue to believe that our ongoing initiatives, including asset sales, capital re-allocation, and liquidity-enhancement, will enable us to navigate the current environment.”

Artis selling retail assets

Artis does not identify the buyer nor the specific assets in the announcement.

However, its four Calgary retail assets – Crowfoot Corner, Crowfoot Village, Sunridge Point and Sunridge Spectrum, comprise 293,660 square feet and were not included in a separate portfolio of 17 retail assets listed for sale by Artis a few weeks ago.

In Winnipeg, Linden Ridge Shopping Centre, Linden Ridge Shopping Centre II, McGillivray Boulevard and the Shoppes of St. Vital comprise a total of 301,539 square feet. The two Linden Ridge properties together comprise the bulk of the portfolio space, with just over 210,000 square feet.

“This transaction reflects the quality of Artis’s real estate portfolio. We are also seeing very strong interest in Artis’s retail portfolio located in other Western Canadian markets with the recent drop in bond yields further strengthening the large number of buyers who have expressed interest in one or more of these markets,” Manji said in the announcement. “This will position us well in our efforts to maximize value on dispositions that Artis is pursuing.”

The transaction is subject to Competition Bureau approval, Artis states in the announcement, and is expected to close in the first half of 2024.

The portfolio which had been listed for sale by Artis includes 17 other assets in Saskatchewan and Alberta.

Artis is a Winnipeg-based, diversified Canadian real estate investment trust with a portfolio of industrial, office and retail properties in Canada and the United States.

Source link


Curation Team will curate content from different sources and present for you. We will not edit any content. Source link is provided for the source from where its received .

Leave a Reply

Your email address will not be published.

nclt admits insolvency plea against ansal properties promoter
Previous Story

NCLT admits insolvency plea against Ansal Properties’ promoter, ET RealEstate

2023122236 yearend2023
Next Story

RENX’s top commercial real estate stories of 2023 • RENX

Latest from Blog