Montreal real estate firm Canderel has put on the table a big deal to buy Cominar Real Estate Investment Trust with the help of several partners, which will then constitute one of the largest real estate acquisitions ever made in Quebec.
The consortium, made up of FrontFour, Real Estate Investment Trust Artis and Sandpiper Group, has proposed redeeming shares of Quebec’s largest owner of commercial buildings for $11.75 in cash per unit.
Canderel notably entered into agreements to sell a portfolio of industrial property to Blackstone and a portfolio of certain assets to Groupe Mach.
“This transaction will provide significant benefits to key stakeholders, including Cominar’s tenants, by leveraging resources from the Canderel investment platform and a group of investors with a long-term perspective, led by Quebecers, and the ability to seize growth and development opportunities in the communities where Cominar operates,” he said. Brett Miller, CEO of Canderel, in a press release on Sunday.
The deal, said to be worth $5.7 billion, is expected to be completed in the first quarter of 2022, once regulatory approvals are obtained.
“Following a formal strategic analysis process, and upon the recommendation of the independent trustees to the Board of Directors, we are pleased to achieve an outcome that provides immediate value to unitholders,” said Sylvain Cosset, President and CEO of Cominar.
Cominar’s Board of Trustees agreed to approve the arrangement agreement at a private meeting around December 21.
Cominar’s portfolio consists of 310 office, commercial and industrial buildings located in the Montreal, Quebec and Ottawa regions.
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