The Private Income-Producing District REIT™ Celebrates a Year of Successful Acquisitions Despite Economic Climate
With the addition of multi-residential, commercial, and industrial portfolios, District REIT nearly doubles its gross asset value – reaching $167 million.
BURLINGTON, January 13, 2023 – With the recent acquisition of more than 170 commercial and residential units, District Property Trust (District REIT) closed out 2022 by nearly doubling its gross asset value to $167 Million.
The new properties, located in Owen Sound, Brantford, Ayr, and London, Ontario, deliver immediate growth to District REIT’s portfolio of properties, increasing the total number of units in District REIT’s portfolio by more than 100%, its total assets by more than 70%, and its investment property by more than 90%.
The acquisition demonstrates District REIT’s ability to create value through creative deal-making, explains Carmen Campagnaro, Principal and Trustee of District REIT. “The beauty of the deal is the creative structuring,” she says. “Many companies can go out and buy real estate, but it’s the structure and creativity of the deal that delivers a return, and that’s what happened here.”
South Bruce Industrial Collection, purchased for $17 million in September 2022, is a portfolio of properties in Owen Sound, Ontario. The portfolio consists of 12 commercial and industrial properties with a gross leasable area of 173,530 sq.ft. and 49.5 acres of land. With the South Bruce acquisition, District REIT is excited to add industrial real estate to its holdings, a move that expands and diversifies its portfolio. Additionally, this portfolio has an established local management team, no vacancies, a tenant waiting list, and produces a positive cash flow.
“From a cash flow perspective, this property is excellent,” says Campagnaro. “Additionally, there is another 60,000 sq.ft. that can be developed that will generate millions of dollars of additional value for the REIT.”
Westbridge Collection, purchased in May of 2022 for $13 million, consists of four multi-residential properties with 53 residential units stretching over 10,000 sq.ft. in Brantford, Ontario. The four properties included have historical architecture and have been converted or renovated to residential assets. Prior to acquiring, the majority of the portfolio had vacancies and below market rents, which provided immediate upside in creating value for the REIT.
These properties remain as one of the few with three- and four-bedroom suites in the downtown area—a benefit to families looking for rentals.
Wish at Windsong, a new construction, two-building rental property with 61 residential units at 170 and 180 Northumberland Street in Ayr, Ontario, delivers tenants with high-end rentals featuring in-suite laundry, modern finishes, and easy access to Highway 401. Purchased in April of 2022, Wish at Windsong fortifies District REIT’s investment property value by increasing the total residential units and total assets in the portfolio.
Wharncliffe Medical Plaza, in London, Ontario, occupies the busy intersection of Wharncliffe Road North and Oxford Street West. The Plaza, consisting of 25 commercial units, was purchased in June 2022 for $10.2 million. The property, a site for dentists, pharmacists, a chiropractor, cardiologists, and other high-value professional tenants, sits between Western University, University Hospital, and St. Joseph’s Hospital, making it a high-performing multi-residential asset.
Now in 2023, District REIT continues to mine opportunities to create value for investors. One strategy is to focus on the acquisition of multiple affordable housing properties, with a selection of portfolios already targeted for the REIT, as well to continue satisfying the demand for more rentals.
“There’s a waiting list to get into the rentals we’ve recently acquired,”Campagnaro says. “We’re renting to trades, like electricians and plumbers and manufacturers, as well as new Canadians looking for a place to raise a family.”
“We see an enormous opportunity to deliver value to both the REIT and to our tenants.”
About District REIT™
District Property Trust, also known as District REIT™, is a private Real Estate Investment Trust that owns and operates a portfolio of diversified income-producing real estate along with real estate mortgage investments.
As unit holders, investors benefit from the capital appreciation of District REIT’s assets through ongoing management and value creation strategies. As a Canadian entity, District REIT seeks to acquire Canadian properties with a primary focus on emerging secondary and tertiary markets within Southern Ontario.
As a private REIT, District REIT is not traded on a public exchange. Unit prices are calculated quarterly, offering ease from daily fluctuations. The net asset value of the REIT is based directly upon the market value of the underlying real estate assets.
District REIT is classified as an exempt market product by the Securities Regulators in Canada, and interested investors should contact District REIT’s securities dealer for investor qualification requirements.
District REIT is RRSP eligible with a minimum investment of only $10,000, offers a tax-advantage structure, and a distribution reinvestment plan (DRIP).