Skyline Commercial REIT Acquires London, ON Portfolio

On Thursday, October 3^rd, 2013, Skyline Commercial REIT purchased an industrial park portfolio in London, ON. While Skyline Apartment REIT currently owns seven multi-residential properties in London, this purchase was Skyline Commercial REIT’s first in the city.

The portfolio at Newbold Business Park is comprised of 17 properties and is made up of 365,093 square feet of commercial space.

“The acquisition of the Newbold Industrial Portfolio is a tremendous opportunity for Skyline Commercial REIT,” says Mike Bonneveld, Director of Acquisitions for Skyline Asset Management Inc. “We believe the portfolio will not only provide a strong return for our investors, but also the opportunity to enhance the property-level cash flow through the strategic lease-up of available space in the portfolio. By acquiring the portfolio at approximately $53 per square foot, significantly below replacement cost, we believe this is a strategic entry point into the London industrial market.”

Post-acquisition, Skyline Commercial REIT now comprises 58 properties across 13 Ontario communities, and approximately 2.9 million square feet of commercial space. The total internally appraised IFRS value of Skyline Commercial REIT is approximately $279 million. Further, Skyline Commercial REIT now has over 551 tenants, with no single tenant representing greater than 1.8% of the REIT’s gross revenue, adding to the REIT’s multi-tenant diversification and stability model made up of mostly light industrial and office space.