InterRent REIT - CEO, Mike McGahan
CEO, Mike McGahan
Source: Fin SMEs
Market Herald logo

Subscribe

Be the first with the news that moves the market
  • InterRent REIT (TSX:IIP.UN) has entered into an agreement with a syndicate of underwriters to raise roughly C$200 million
  • The offering will be led by Scotiabank, BMO Capital Markets and Desjardins Capital Markets
  • InterRent will issue approximately 13.7 million trust units at a price of $14.65 each
  • The proceeds will be used for a variety of purposes, including debt repayment and future acquisitions
  • InterRent REIT (IIP.UN) is currently down 4.4 per cent and is trading at $14.56 per share

InterRent REIT (TSX:IIP.UN) has entered into an agreement with a syndicate of underwriters to raise roughly C$200 million.

Under the agreement, to be led by Scotiabank, BMO Capital Markets and Desjardins Capital Markets as joint bookrunners, the real estate investment trust will issue approximately 13.7 million trust units at a price of $14.65 each.

The underwriters will also be granted an over-allotment option to purchase a further two million units, also at a price of $14.65 each, for additional proceeds of approximately $30 million.

The proceeds raised under the offering will be used to repay existing debt and pursue future acquisition opportunities. A portion will also go towards general working capital purposes.

Following the completion of the offering and before any further acquisitions, InterRent will have a debt to gross book value ratio of roughly 26.8 per cent.

Mike McGahan, CEO of InterRent REIT, said that the company’s portfolio is resilient and continues to perform extremely well.

“The current economic conditions as a result of the pandemic are likely to surface attractive acquisition opportunities that may not have otherwise come available, and following closing of the offering, InterRent will be exceptionally well positioned to capitalise on those opportunities.

“Our management team has an established track record of creating value from periods of significant volatility and market dislocation, having acquired and operated apartments through the early 90’s and again when we joined InterRent during the global financial crisis,” he said.

Subject to approval from the Toronto Stock Exchange, the offer is anticipated to close on around June 4, 2020.

InterRent REIT (IIP.UN) is currently down 4.4 per cent and is trading at $14.56 per share at 2:36pm EDT.

More From The Market Herald

" Voxtur (TSXV:VXTR) acquires Blue Water and expands credit facilities and announces $4M private placement

Voxtur Analytics Corp. (VXTR) has acquired Blue Water Financial Technologies Holding Company.

" Colliers (TSX:CIGI) acquires interest in leading capital markets advisor in Sweden

Colliers (CIGI) has agreed to acquire a controlling interest in Pangea Property Partners, a leading capital markets advisor in Sweden and Norway.

" SmartCentres REIT (TSX:SRU.UN) announces CFO transition

SmartCentres REIT has announced that its Chief Financial Officer, Peter Sweeney, will be leaving SmartCentres (SRU.UN).

" The Real Brokerage (TSX:REAX) is joined by The Crew Real Estate team

The Real Brokerage (REAX) announced that The Crew Real Estate team is joining its growing network of agents.