The investor consortium, which includes FrontFour Capital Group, Artis Real Estate Investment Trust and partnerships managed by the Sandpiper Group, will acquire Cominar for C$11.75 in cash per unit, Canderel said in a statement on Sunday.
An investor group led by Canadian real estate company Canderel has agreed to take Cominar REIT private in a C$2.14 billion ($1.73 billion) deal, as it looks to expand its presence in Montreal, Quebec City and Ottawa.
The investor consortium, which includes FrontFour Capital Group, Artis Real Estate Investment Trust and partnerships managed by the Sandpiper Group, will acquire Cominar for C$11.75 in cash per unit, Canderel said in a statement on Sunday.
The offer represents a premium of 13.4% to Cominar’s last close on Friday. Including debt, the deal is valued at C$5.7 billion, according to Canderel.
The investor group will then sell some of Cominar’s retail and office properties to real estate developer Groupe Mach for about C$1.5 billion, the statement said.
Group Mach said the deal would expand its position in the province of Quebec.
According to Canderel, the consortium will also sell Cominar’s industrial portfolio to Blackstone Inc for an undisclosed sum, while intending to retain portions of its retail and office portfolio.
Cominar owns 310 office, retail and industrial properties, totaling 35.7 million square feet located in Montreal, Quebec City and Ottawa.
Moelis & Company advised the Canderel-led investor group while National Bank Financial Inc and BMO Capital Markets served as Cominar’s advisers.
($1 = 1.2371 Canadian dollars)
Source: Reuters
(The story has been published from a wire feed without modifications to the text. Only the heading has been changed)
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