Ottawa-headquartered Minto Apartment Real Estate Investment Trust (TSX: MI.UN) announced that it is being acquired by Crestpoint Real Estate Investments Limited Partnership in an all-cash transaction valued at $2.3 billion.
The transaction price of $18.00 per Trust Unit represents a 32% premium to the closing price of the Trust Units on the Toronto Stock Exchange (the “TSX”) on Jan. 2, the last trading day prior to the announcement of the transaction, and a 35% premium to the Trust Units’ 20‑day volume‑weighted average price on the TSX for the period ending Jan. 2. Upon completion of the deal, Minto will cease to become a publicly traded company.
“We have great confidence in the high-quality, well-located portfolio we have built; however, capital markets constraints have hindered our ability to achieve our long-term growth objectives,” said Jonathan Li, president and CEO of Minto. “This transaction provides Trust Unitholders with near-term liquidity at a significant premium to the current trading price at a time when the operating environment is challenging and the capital markets remain sub-optimal for the Canadian multi-family sector. This is a strong result for all stakeholders.”
Kevin Leon, Crestpoint president and CEO, added, “We are proud to partner with Minto on this transaction as we strengthen our presence in the multifamily sector through the acquisition of a diversified portfolio of high-quality assets in Canada’s largest markets. This partnership represents an exceptional opportunity to work alongside a well-respected real estate developer and operator with over 70 years of experience, and we look forward to building a successful, long-term relationship.”
