Plaza Retail REIT has urged shareholders to take no action while it evaluates an unsolicited C$1.23bn (€761bn) take-private proposal from Axia Real Assets, which has already secured the strong backing of the Canadian retail property trust’s largest 15.3% shareholder.
Axia is proposing to acquire TSX-listed Plaza Retail REIT at a price of C$5.28 per unit, representing a 19.5% premium to the stock’s last closing price, a deal that values the real estate investment trust (REIT) at approximately $1.23bn, including around $670m of debt.
Axia, which has called on investors to pressure the Plaza Retail REIT board to engage on the proposal, added that the REIT’s largest shareholder, Morguard Corporation, has already expressed strong support for the transaction.
Plaza Retail REIT said it will evaluate the proposal against its business plan and potential alternatives to maximise value for unitholders.
The REIT added that no decision has been made, there is no assurance a transaction will result and shareholders do not need to take any action at this time.
Plaza Retail REIT is an open-ended REIT focused on owning and developing retail property across Ontario, Quebec and Atlantic Canada. The firm’s current portfolio comprises interests in 190 properties totalling approximately 8.8m sqft, alongside additional land held for development.
Axia Real Assets, founded in 2021, focuses on investing in grocery-anchored real estate and last-mile industrial properties.
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