Toronto-listed Dundee REIT plans to raise around CA$346 mln (EUR 247 mln) in an IPO of its international arm to help fund the acquisition of hundreds of Deutsche Post real estate assets in Germany. The full value of the acquisition comes to more than CA$1 bn, split evenly between equity and debt.
Toronto-listed Dundee REIT plans to raise around CA$346 mln (EUR 247 mln) in an IPO of its international arm to help fund the acquisition of hundreds of Deutsche Post real estate assets in Germany. The full value of the acquisition comes to more than CA$1 bn, split evenly between equity and debt.
The Dundee International REIT offering will be the first IPO by a property company in Canada this year. Dundee has priced the IPO at CA$10 a unit. Other units of the Dundee Group, according to a prospectus filed for the IPO, will contribute a further CA$120 mln to the deal.
In all, Dundee International REIT is to acquire 295 logistics and commercial properties that provide 1.2 million m2 of space. Deutsche Post leases about 75% of the portfolio on average terms of seven years.
The properties are being divested by Lorac Investment Management. The Luxembourg-based fund acquired 1,200 properties from Deutsche Post World Net in a sale-and-leaseback transaction in April 2008.
