Ottawa-based CLV Group is poised for a 74 per cent expansion of its multifamily portfolio through an agreement to purchase the assets of InterRent Real Estate Investment Trust (REIT) and take them private. The REIT’s board of directors has tentatively accepted a CAD $4 billion cash offer in the form of a $13.55 per unit payout and the assumption of net debt, but the deal still requires unitholder and regulatory approval.
As well, it comes with a potential sweetener via a 40-day go-shop period in which the REIT can entertain offers from other purchasers. CLV Group and its partner in the proposed acquisition — the global investment management firm, GIC — would then have the option of matching any of those bids. However, $13.55 per unit already represents a 29 per cent premium on the REIT’s volume weighted average price (VWAP) for the 90-day period ending May 29, 2025.
“We are pleased to provide immediate and certain premium value to our unitholders through this all-cash transaction with CLV Group and GIC, while also allowing InterRent to solicit superior proposals through a go-shop period of 40 days,” says Brad Cutsey, chief executive officer and trustee of InterRent.
Unitholders will consider the proposal in a special meeting sometime in the third quarter of 2025. Acceptance of the offer will be contingent on the approval of at least two-thirds of voters, which must include a majority of the unitholders who have no interest in CLV Group, GIC or any of their affiliates. With unitholder and regulatory approval, and the consent of Canada Mortgage and Housing Corporation (CMHC) and certain existing lenders, it’s anticipated the deal would close in late 2025 or early 2026.
“We are delighted to partner together with GIC on this transformative transaction, combining our 50 years of operating experience and GIC’s strong track record as a long-term investor in Canada and around the world,” say Mike McGahan, CLV Group’s president and chief executive officer. “We look forward to continuing to deliver exceptional value to residents through the operational excellence of our combined CLV and InterRent teams.”
As of April 2025, InterRent holds roughly 13,400 rental housing units in 123 buildings, largely located in the Greater Toronto and Hamilton Area, Greater Montreal, Ottawa and Greater Vancouver. CLV Group currently has more than 7,700 multifamily units as part of portfolio of CAD $3 billion in assets under management.
