Canderel Real Estate Property Inc. is leading an investor consortium intent on acquiring Cominar Real Estate Investment Trust (REIT). The parties have reached an agreement to offer $11.75 in cash per unit, equating to a 16.3 per cent premium on the TSX 20-day average trading price as of Oct. 22.
The proposed deal represents an enterprise value of $5.7 billion for the 310-building, 35.7-million-square-foot portfolio. Cominar’s board has given unanimous approval. Subject to unit-holders’ and regulators’ approval, the acquisition is expected to be completed in the first quarter of 2022.
The investor consortium plans to sell Cominar’s industrial holdings to Blackstone, and another grouping of retail and office properties to Montreal-based Groupe Mach. Remaining office and retail properties and associated development opportunities in Ottawa, Montreal and Quebec City will be retained and held jointly.
“Our investor consortium is taking a long-term view in acquiring the Cominar portfolio and expects to leverage the complementary development, operating and asset management expertise of our respective organizations to enhance the value of, and re-develop, these high-quality holdings,” maintains Brett Miller, Canderel’s chief executive officer.
Other consortium members include: Artis Real Estate Investment Trust; the U.S. investment company, FrontFour Capital Group; and partnerships managed by the Vancouver-based private equity firm, Sandpiper Group.
“We are confident that Canderel and their partners are well positioned to continue investing in key assets over the long term, while also serving our valued tenants and communities,” says Sylvain Cossette, president and chief executive officer of Cominar.