CLVGroup, in conjunction with GIC, is set to acquire InterRent REIT in a $4 billion, all-cash deal.
In a significant development for the Canadian real estate market, InterRent Real Estate Investment Trust (REIT) has announced an all-cash acquisition by Carriage Hill Properties Acquisition Corp. The transaction, valued at approximately $4 billion, is subject to regulatory approvals and unitholder approval.
InterRent REIT, a prominent player in the Canadian real estate sector, focuses on acquiring and managing multi-residential properties, primarily in high-demand urban centres like Montreal and Toronto. The REIT has been actively engaged in a capital recycling strategy to enhance shareholder value by selling non-core assets and reinvesting in strategic acquisitions and unit buybacks.
The acquisition details reveal that InterRent REIT will be sold for $4 billion in cash to Carriage Hill Properties Acquisition Corp. The go-shop period, during which InterRent REIT could solicit alternative transactions, has concluded without any competing offers, suggesting that the current acquisition is proceeding as planned.
Unitholders will receive $13.55 per unit in cash, representing a 35% premium to InterRent's unaffected closing unit price and a 29% premium to InterRent's 90-day VWAP. The transaction is subject to customary closing conditions, and if terminated during or after the Go-Shop Period, a termination fee would be payable to the Purchaser or InterRent.
To ensure the fairness of the transaction, several advisory and legal roles have been assigned. Norton Rose Fulbright is advising InterRent REIT in connection with the sale to Carriage Hill Properties Acquisition Corp. Scotiabank is acting as financial advisor to the Purchaser, and The Bank of Nova Scotia is acting as sole underwriter on the credit facilities in support of the acquisition.
Independent financial advisors, including National Bank Financial, have provided independent fairness opinions and formal valuations to the Special Committee. The fairness opinions from BMO Capital Markets and NBF state that the consideration to be received by unitholders is fair, from a financial point of view.
The transaction, if consummated, will constitute a "business combination" for purposes of MI 61-101, and a special committee was formed to review and evaluate the terms of the proposal, make recommendations, negotiate terms, and supervise the preparation of a formal valuation. A special meeting of unitholders to consider the transaction is expected to be held in Q3 2025.
Gowling WLG (Canada) LLP is acting as legal counsel to InterRent, Skadden, Arps, Slate, Meagher & Flom LLP is counsel to GIC in connection with the joint venture arrangements, and Goodmans LLP and Stikeman Elliott LLP are acting as legal counsel to CLV Group and GIC, respectively.
The board of trustees, acting on the unanimous recommendation of the special committee, has unanimously approved the transaction and recommends that unitholders vote in favor of it. The acquisition underscores the strategic interest in Canadian real estate assets, particularly in multi-residential properties.
- In the Canadian real estate industry, news about the all-cash acquisition of InterRent REIT, a prominent player in the multi-residential property sector, by Carriage Hill Properties Acquisition Corp, valued at approximately $4 billion, has ignited discussions about security in the cloud infrastructure of the deal's performance.
- The performance of the transaction is crucial, as it will primarily impact the finance and investing sector, considering the significant premium unitholders are set to receive, and the potential impact on markets and businesses.
- In the realm of security, the legal and advisory roles played by firms such as Norton Rose Fulbright, BMO Capital Markets, Scotiabank, and Gowling WLG (Canada) LLP aim to ensure the fairness and compliance of the transaction.
- The acquisition, if approved, could potentially lead to increased investment in the Canadian real estate industry, particularly in the urban centers of Montreal and Toronto, reflecting a growing interest in the security and performance of cloud-supported real estate infrastructure.
