Cominar REIT has acquired a portfolio of shopping centres and office buildings from Ivanhoé Cambridge, the real estate subsidiary of the Caisse de dépôt et placement du Québec, for an estimated at $1.63 billion, including ownership interests of partners of Ivanhoé Cambridge in two of those properties. The share of the assets being sold by Ivanhoé Cambridge is $1.527 billion. The portfolio includes 11 shopping centres (the sale of two of which is subject to approval by the co-owners and the sale of a third one is subject to a right of first refusal), three office buildings and one industrial property, all located in Québec and Ontario.
In order to execute the transaction, Cominar conducted financing operations:
- issuance of $500 million of new units, including a $250 million portion to be purchased by Ivanhoé Cambridge;
- Otéra Capital, the commercial real estate financing subsidiary of La Caisse, is also involved in the financing for $250 million;
- a syndicate comprising National Bank of Canada and Bank of Montreal granted bridge loan facilities of up to $950 million.
After the transaction, Ivanhoé Cambridge will own approximately 8.5 per cent of Cominar’s units and will be the REIT’s largest unitholder. It intends to work closely with Cominar’s senior management and with the second-largest unitholder, the Dallaire family.