Elad Canada, has entered into an agreement to acquire the full portfolio of Agellan Commercial Real Estate Investment Trust distributed throughout major urban cities in the United States for approximately $680-million.
“The transaction is an important strategic step for Elad Canada, which will solidify its operations in the income-producing properties segment and will generate significant additional cash flow,” said Elad Canada CEO Rafael Lazer.
The real estate development and asset management company is the largest unitholder of the REIT holding approximately 19 per cent of the units. About 87 per cent of REIT’s assets are classified as light industrial properties which include flex and showroom spaces, the remainder of the portfolio are office buildings. The occupancy rate for properties is about 94 per cent on average.
The transaction is expected to be completed in February 2019.