Artis REIT announces participation in Investor Group to acquire Cominar REIT in all-cash transaction
WINNIPEG, MB, 24 October 2021 / CNW / – Artis Real Estate Investment Trust (âArtisâ or the âREITâ) (TSX: AX.UN) today announced that a consortium led by Canderel Real Estate Property Inc. and comprising Artis, managed partnerships by the Sandpiper Group, and FrontFour Capital Group LLC (the “Consortium”) has, through a newly formed entity, entered into an arrangement agreement for the acquisition of Cominar Real Estate Investment Trust (“Cominar” ), with unitholders of Cominar, other than certain unitholders of Cominar who are members of the Consortium, receiving the review of $ 11.75 in cash per unit, (the âTransactionâ). The Consortium intends to retain portions of Cominar’s retail portfolio, as well as components of Cominar’s office portfolio, and has entered into agreements to sell Cominar’s industrial portfolio to Blackstone and a portfolio made up of certain retail and office assets from Cominar to Groupe Mach. Koch Real Estate Investments, LLC and Artis will also provide senior equity for the transaction.
The transaction, which is expected to close in the first quarter of 2022, has been recommended by Cominar’s board of trustees and its special committee and remains subject to the approval of Cominar unitholders, the courts, required regulatory approvals. and customary closing conditions.
Artis has committed a total of up to $ 214 million to the Operation, which includes participation in multiple aspects of the Consortium’s overall capital structure, including $ 100 million of lower-ranking preferred shares with a distribution rate of 18% per year and up to $ 114 million in shares of ordinary shares.
âThis transaction is an important step in the implementation of the next phase of our new vision and strategy,â said Samir manji, President and CEO of Artis. âWe are excited to be partnering with this group of experienced real estate investors on an opportunity that aligns with our long-term goals and that we believe will generate strong annual returns on our overall capital commitments. This initiative also reflects the nature of the opportunities and investments that we look forward to pursuing in the future with other potential investors and partners. “
Ben rodney, Chairman of the Board of Directors of Artis, added: âOur business transformation plan, announced just seven months ago, is working. $ 700 million On the sale of Artis’ GTA industrial portfolio, our management team, together with Sandpiper Group, identified opportunities that can increase unitholder returns through this tiered and accretive investment strategy. “
At March 10, 2021, Artis announced a new vision and strategy for the REIT – to create a premier asset management and investment platform focused on growing NAV per unit and distributions for investors through the debt repayment, principal repayment and valuable investment in real estate. As part of this strategy, Artis is committed to deploying capital in strategic investments in portfolio companies and focusing its participation in the highest and best return opportunities in order to maximize long-term value for unitholders.
Artis is a diversified Canadian real estate investment trust with a portfolio of industrial, office and retail properties in Canada and United States. Artis’ vision is to create a premier asset and investment management platform focused on growing NAV per unit and distributions for investors through debt repayment, debt repayment capital and value investment in real estate.
This press release contains forward-looking statements. To this end, all statements contained in this document that are not statements of historical fact may be considered as forward-looking statements. Without limiting the foregoing, the words “expects”, “anticipates”, “intends to”, “estimates”, “plans”, “seeks” and expressions or similar variations of such words and expressions which State that certain actions, events or results ” may ”, ” would ” or ” will ” occur or be carried out are intended to identify forward-looking statements. In particular, the statements concerning the terms and conditions of the Transaction and Artis’ participation in it, the timetable for the Transaction, the repayment of capital and the investment strategies of Artis, making Artis a platform leading value-driven investment management and investing in real estate, the ability of the REIT to execute its strategy, the ability of the REIT to maximize long-term value and expected returns are forward-looking statements . Forward-looking statements are based on a number of factors and assumptions which were used to develop such statements, but which may prove to be inaccurate. Although Artis believes that the forward-looking statements contained in this press release are based on current, reasonable and complete information and assumptions, such statements are inherently subject to a number of factors that could cause actual results differ significantly from management expectations. and the plans set forth in such forward-looking statements, including, without limitation, the following factors, many of which are beyond the control of Artis and the effects of which may be difficult to predict, including the possibility that the transaction proposed to be completed on the terms and conditions, or on schedule, currently contemplated, and may not be completed at all, due to failure to obtain or meet, in a timely or otherwise, approvals required by unitholders, courts and regulators and other closing conditions necessary for the completion of the Transaction or for other reasons; risk related to tax matters; and credit, market, foreign exchange, operational, liquidity and financing risks in general and specifically related to the Transaction, including changes in economic conditions, interest rates or tax rates. For more information on the risks, uncertainties and assumptions that could cause Artis ‘actual results to differ from current expectations, see the section entitled âRisk Factorsâ of Artis’ Annual Information Form. for the year ended. December 31, 2020 as well as other public documents of Artis, available on www.sedar.com. Artis cannot assure investors that actual results will be consistent with forward-looking statements and Artis assumes no obligation to update or revise such forward-looking statements to reflect actual events or new circumstances. All forward-looking statements contained in this press release are qualified by this cautionary statement.
SOURCE Artis Real Estate Investment Fund
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