Margaux Real Estate Investment Trust (TSXV: ALFA.UN) has closed the purchase of a self-storage site in Saint-Basile-le-Grand, Quebec, paying $12.5 million at closing through a wholly owned subsidiary. The transaction was announced on August 4, 2026, and follows terms disclosed in an earlier release.
Part of the consideration was settled in equity rather than cash. The seller, described as an arm's-length third party, accepted 384,616 trust units priced at $1.30 each, worth $500,000, as a portion of the purchase price. The remaining $12 million was cash funded through debt.
The property consists of roughly 145,000 square feet of land and a two-storey building totalling 76,000 square feet. It offers heated indoor storage units alongside outdoor parking space for cars, recreational vehicles, trailers and equipment.
On the income side, the trust cites figures supplied by the vendor rather than its own audited numbers: annualized revenue of $1,050,000 and net operating income of $750,000. On the stated $12.5 million price, that implies a yield in the area of 6 percent, though buyers of small operating assets typically revise seller-supplied numbers after taking over the books.
Financing came from a Canadian chartered bank and a second financial institution that the release does not name. iA Capital Markets acted as agent for the trust on the latter piece and will be paid a fee agreed between the parties. No interest rates, loan amounts or maturities were disclosed.
Chief executive Michel Lassonde said the site sits on Route 116 in an area of population growth and that its occupancy rate is currently 100 percent. He put the trust's combined portfolio at more than 1,000 storage spaces across the Montérégie-Estrie region.
President and chief operating officer Luc Poirier said a professional appraisal valued the property at $14 million. The release does not identify the appraiser or the date of the valuation.
One detail worth noting for investors: the deal was brokered by KW Urbain acting for the trust, with Wassim Labateya as lead broker. Labateya is also an officer of Margaux and will receive a share of the commission, which the release says is paid entirely by the seller.
The site becomes Margaux's fifth property, adding to holdings in Cowansville-Bromont, Roxton Pond-Granby, Drummondville and Saint-Hyacinthe. The trust describes itself as the only publicly listed self-storage REIT in Canada.
The TSX Venture Exchange has not reviewed the merits of the transaction.
Source: Newsfile
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