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Two portfolio Acquisitions consisting of 17 institutional-quality industrial assets comprising approximately 773,000 square feet of total GLA in Québec City and Winnipeg for a combined purchase price of $136.8 million
Acquisitions expected to provide immediate scale benefits, increasing total GLA by approximately 12% to 7.2 million, while significantly expanding Québec presence by 613,000 square feet or approximately 7% of total GLA
Participation from strategic partners Collingwood Investments Incorporated and Parkit Enterprise Inc. via a Concurrent Private Placement
The Acquisitions are accretive to AFFO per unit* on a leverage neutral basis and are expected to provide future growth through leasing and mark-to-market opportunities
Enhanced liquidity through pay down of credit facilities and other indebtedness
MONTREAL, June 03, 2026 (GLOBE NEWSWIRE) -- PRO Real Estate Investment Trust (TSX:PRV) ("PROREIT" or the "REIT") today announced that it has entered into separate binding agreements to acquire a 100% interest in two industrial portfolios located in Québec (the "Québec Portfolio") and Winnipeg, Manitoba (the "Winnipeg Portfolio", and together with the Québec Portfolio, the "Acquisitions"). The Québec Portfolio comprises 13 industrial properties located in Québec City, representing an aggregate of approximately 613,000 square feet of gross leasable area ("GLA"). The Winnipeg Portfolio comprises four industrial properties totaling approximately 160,000 square feet of GLA. The Acquisitions are expected to be completed for an aggregate purchase price of approximately $136.8 million (excluding closing costs).
In addition to the Acquisitions, the REIT has entered into a conditional agreement for the acquisition of four industrial properties totaling approximately 165,000 square feet of GLA also located in Winnipeg, Manitoba, for a purchase price of $21.7 million (excluding closing costs) (the "Conditional Acquisitions"). The acquisition agreement for the Conditional Acquisitions includes conditions precedent to closing, including conditions in favour of the vendor that must be satisfied at its sole discretion. The Conditional Acquisitions are complimentary to the Acquisitions.
"The Acquisitions represent a compelling strategic addition to our portfolio, delivering both immediate scale in the Québec City market and meaningful long-term growth potential while enhancing our exposure to the Winnipeg industrial market. The Acquisitions are complementary to our portfolio and provide us with a mix of stabilized income and embedded upside through leasing and mark-to-market opportunities, with small-bay industrial market rents estimated at $13 to $15 per square foot in Québec City and $10 to $12 per square foot in Winnipeg. Importantly, they further strengthen our platform by increasing diversification and position us to capitalize on continued demand fundamentals in the industrial sector. The Acquisitions underscore our disciplined approach to sourcing attractive opportunities and reinforce our commitment to driving sustainable value for our unitholders." said Gordon Lawlor, Chief Executive Officer.
"Participation from high-quality partners such as Collingwood Investments Incorporated (part of the Bragg Group of Companies) and Parkit Enterprise Inc. in the Concurrent Private Placement (as defined below) is a strong endorsement of our strategy and execution. We remain focused on delivering long-term value and are confident in our ability to continue growing alongside these partners," added Gordon Lawlor, Chief Executive Officer.
The Acquisitions
Québec Portfolio
PROREIT has entered into a binding agreement to acquire a portfolio of 13 industrial properties in Québec City totaling approximately 613,000 square feet of GLA for a purchase price of $112.8 million, significantly expanding the REIT's presence in the Québec market. Strategically located across core industrial nodes with close proximity to major transportation infrastructure, the portfolio is highly clustered, with approximately 77% of the properties situated within two key industrial parks, Carrefour du Commerce Industrial Park and Cardinal Industrial Park, enabling operational scale and efficiency. The portfolio is currently approximately 91% occupied with a weighted average lease term of 2.8 years and features meaningful embedded upside, with certain in-place rents estimated to be below market levels, providing a clear opportunity for lease-up and rental rate growth over time.
Winnipeg Portfolio
In addition, PROREIT has entered into a binding agreement to acquire four industrial properties in Winnipeg, Manitoba totaling approximately 160,000 square feet of GLA for a purchase price of $24.0 million, further expanding its presence in a key Western Canadian logistics market. The acquisition includes a single-tenant building totaling approximately 69,000 square feet, which is fully leased on a long-term basis, providing stable in-place cash flow with contractual rent growth over time. The acquisition also includes a three-building multi-tenant portfolio located near other PROREIT assets of approximately 90,500 square feet, which is occupied by a diversified roster of tenants. The Winnipeg Portfolio is currently approximately 97% occupied with a weighted average lease term of approximately 5.2 years, offering both durable income and embedded rental upside through lease ...
