Northview REIT takeover closes at $4.5 billion
Frank O?Brien
Western Investor
Calgary-based Northview Real Estate Investment Trust (REIT), a major multi-family landlord, has been acquired by Starlight Group Property Holdings Inc. a major shareholder, and Kingsett Capital Inc.
The all-cash transaction, which Northview said was based on an unsolicited approach a year ago, has an equity value of $2.5 billion. Including debt, the total deal value reaches $4.8 billion.
The purchasers will acquire Northview units at $36.25 per trust unit. The deal is scheduled to close the week of November 2, according to information released October 1.
Northview has a portfolio of approximately 27,000 residential units and 1.2 million square feet of commercial space in over 60 markets across eight provinces and two territories. Northview is known for acquiring and developing multi-family properties in secondary markets, including Nanaimo B.C., Fort McMurray and other smaller cities in Alberta and, recently, in New Brunswick.
The purchasers have waived material closing conditions, including consents from Canada Mortgage Housing Corporation and lenders. Northview has suspended its October distribution payable to unit holders, making the September 2020 distribution in the amount of $0.1358 per trust unit – payable on October 15, 2020 to holders of trust units of record at September 30, 2020 – the final regular monthly distribution.
“We look forward to building on Northview’s tenant focus by maintaining high-quality, well-operated and sustainable buildings,” said Starlight President and CEO Daniel Drimmer, who ranks as Northview’s top shareholder with a 13 per cent stake, in a release.
“This transaction is a testament to the business Northview has built, both through its original incarnation as Northern Property REIT,” said Northview CEO Todd Cook in a release. “We have successfully executed on our strategic priorities to build the portfolio in strong and growing markets, and to create value for unitholders through organic growth and Northview’s development platform.”
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