Singapore sovereign wealth fund GIC and real estate firm CLV Group have teamed up to acquire Canadian residential real estate investment trust (REIT) InterRent Real Estate Investment Trust in a $4bn (€3.5m) deal.
InterRent shareholders are being offered $13.55 per unit in cash by Carriage Hill Properties Acquisition, an entity owned by GIC and CLV.
The price represents a 35% premium over InterRent’s unit price on the TSX at the close of trading on 7 March, the last trading day before media speculation about the residential REIT began.
The proposed take-private deal is valued at approximately $2bn in equity, or about $4bn when including the assumption of net debt.
Brad Cutsey, CEO and trustee of InterRent, said: “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.
“The entire board of trustees and management team are proud to have executed on our strategy to build a best-in-class operating platform and assemble a portfolio of well-located properties in some of Canada’s strongest urban rental markets. Leveraging that platform, we have repositioned these assets into high-quality communities, generating industry-leading growth and creating significant value for all stakeholders.”
Mike McGahan, president and CEO, CLV Group, said: “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.
“We look forward to continuing to deliver exceptional value to residents through the operational excellence of our combined CLV and InterRent teams.”
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