Portfolio Update
InvestPlus Acquires Another 22,000 SF
Published July 2024
InvestPlus REIT adds the Digitex Building in Red Deer’s Gasoline Alley — a 21,728 sq ft commercial property leased to a Fortune 500 tenant — pushing AUM to $95 million.
InvestPlus REIT is pleased to announce the addition of a 21,728 sq ft commercial building to its portfolio for $5,800,000 at an existing cap rate of 7.89%. The Digitex Building is well located in ever-popular Gasoline Alley in Red Deer, Alberta — an amenity-rich area for locals and travelers between Calgary and Edmonton. The acquisition closed in June 2024 and marks another milestone within the InvestPlus portfolio, bringing the overall commercial space under management to more than 510,000 sq ft and the Assets Under Management (AUM) to $95 million.
We continue to further our footprint in the industrial space and add assets with strong tenant covenants. The tenant is a Fortune 500 company whose strategy for this building is to make it their head office for Western Canada — a great tenant with a strong covenant and business.
Long-term financing through National Bank
We have also been successful in having one of the chartered banks, National Bank, provide financing for this building. We secured financing with National Bank for a five-year term at a rate of 5.7%. These rates and terms from a chartered bank allow InvestPlus REIT to provide unitholders with the security of a long-term fixed mortgage, providing predictable revenue to the Trust.
Having National Bank as our lender further confirms the steps we’re taking as a Trust to grow and acquire accretive properties like the Digitex Building. We’re excited to work with National Bank and look forward to furthering our relationship with them in the future.
Projected accretion and portfolio growth
The Digitex Building is projected to be accretive by an average of more than $500,000 over the next four years, after unitholder distribution, for the term of the lease. This accretiveness will help sustain distributions and push our unit value up. The acquisition also pushes our overall AUM to $95M, bringing our 2024 growth to 7% since December 2023.
Built for registered-fund investors
With more than 50% of our unitholders using their RRSP to invest in our Trust, we’re committed to continuing webinars and presentations where we discuss how you can use your registered funds or cash to invest in private commercial and industrial real estate in Western Canada.
Want to invest alongside InvestPlus REIT?
Book a discovery call to learn how RRSP, TFSA, and cash investors are accessing our private industrial portfolio.
BOOK A DISCOVERY CALLAbout InvestPlus REIT (as of July 2024, post-acquisition): Calgary-based private real estate investment fund focused on growing unitholder value through the acquisition, ownership, and management of commercial and industrial properties in primary and secondary markets across Western Canada. Management has transacted more than $150 million in buildings across BC, Alberta, and Saskatchewan. With the Digitex acquisition, the portfolio is appraised at more than $95 million and comprises more than 510,000 square feet of rentable area.
Important note: Acquisition details, cap rates, financing terms, AUM, square footage, and growth percentages in this article reflect the state of the portfolio and the deal at the time of announcement (July 2024). Projected accretion figures are forward-looking estimates as of July 2024 and are not guarantees of future performance. Verify against the most recent InvestPlus REIT materials before relying on specific figures. This article is informational only and does not constitute an offer to sell or a solicitation of an offer to buy securities. Investing involves risk. Speak with qualified advisors before making investment decisions.