PROREIT acquires two Ottawa properties as part of $97.8M deal

A Montreal-based real estate investment trust is bolstering its Ottawa portfolio with two fully leased properties in Kanata South and the central business district.

PROREIT announced last week it has acquired two properties in Ottawa totalling 338,000 square feet of gross leasable space. The two deals, as well as a separate agreement to acquire a five-property light industrial portfolio in Halifax, are valued at a combined $97.8 million.

Though PROREIT declined to disclose the specific properties it had acquired, citing confidentiality agreements in place until the deals close in the coming weeks, both Ottawa properties are described as fully leased with a “diverse roster” of private-sector tenants. The two properties have a weighted average lease term of 6.6 years.

In a release, PROREIT highlighted the tight vacancy rate in Ottawa’s downtown core and the prevalence of the city’s urban tech and government tenants as key factors behind its decision to invest in the CBD.

Similarly, the REIT pointed to Kanata’s “major economic growth” as motivation for its west-end purchase. The Class-A light industrial building, which the release noted is located near the Kanata Centrum Shopping Centre and Terry Fox transit station, includes office and research lab space with a roster of tenants operating in the material sciences, defence, communications and medical technologies industries.