Canderel-led consortium to acquire Cominar in a $ 5.7 billion deal

The cash offer has a premium of 16.3% over the average price of the shares.

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Quebec’s Cominar Real Estate Investment Trust said Sunday it had signed an agreement to be acquired by a consortium led by Montreal-based Canderel Real Estate Property Inc. for $ 5.7 billion.

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Cominar shareholders will receive $ 11.75 per share in cash per unit, according to the statement . This represents a 16.3 percent premium over Cominar’s 20-day volume-weighted average on the Toronto Stock Exchange, he said.

The investment group also includes FrontFour Capital Group LLC, Artis Real Estate Investment Trust and partnerships managed by Sandpiper Group, with capital from Koch Real Estate Investments, LLC.

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Some of Cominar’s assets will be resold to other groups. Groupe Mach Acquisition Inc., whose properties include Sun Life Building, 1000 de la Gauchetière and CIBC Tower, will acquire $ 1.5 billion in commercial and office properties, while Blackstone will acquire Cominar’s industrial portfolio. The consortium, called Iris Acquisition II LP, will retain Cominar’s remaining office and commercial assets.

“The Transaction provides Cominar shareholders with compelling value and immediate liquidity, after an extensive strategic review process supervised by a special committee made up of independent trustees, with input from financial and legal advisors,” the Cominar statement said.

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