NORTH AMERICA – A group that includes KinSett Capital and the Ontario Pension Board has made an all-cash offer to purchase all of the outstanding trust units of Primaris Retail Real Estate Investment Trust, valued at approximately $4.4bn (€3.4bn).

The offering price of $26.00 in cash per unit represents a premium of approximately 12.8% to the closing price of $23.04 per unit on the TSX on 4 December.

Jon Love, managing partner at KinSett Capital, said: "This is a strong and compelling offer, providing unit holders with a premium price at a time of peak valuations in the sector."

Mark Fuller, chief executive at the Ontario Pension Board, said: "This transaction provides significant and immediate value to Primaris's unit holders and is fully aligned with our strategy to increase our exposure to private market investments, such as real estate, private equity and infrastructure, by partnering with leading institutions."

In connection with the offer, RioCan Real Estate Investment Trust has agreed to purchase certain Primaris properties upon completion of the transaction for an aggregate purchase price of around $1.1bn. 

The assets will include five regional malls and three unenclosed, grocery-anchored shopping centres. 

RioCan will acquire a 100% interest in six properties and a 50% interest in two properties.

Edward Sonshine, chief executive at RioCan, said: "This acquisition will further our strategy of owning important malls in major markets as a complement to our large format portfolio as indicated by our recent purchase of Georgia Mall in Barrie, Ontario."

Primaris owns a portfolio of 35 income-producing properties in the seven provinces of British Columbia, Alberta, Saskatchewan, Manitoba, Ontario, Quebec and New Brunswick.