- What InterRent has agreed to be acquired by CLV Group and GIC
- Why The firms will pay $2bn in cash and assume InterRent’s debts
- What next InterRent has a 40-day go-shop period beginning on Wednesday
InterRent Real Estate Investment Trust has agreed to be acquired by an entity owned by CLV Group and GIC for approximately $4bn.
Carriage Hill Properties Acquisition Corp. will acquire all units of the REIT, other than the units of retained interest holders, for $13.55/unit in cash, translating to approximately $2bn. The assumption of InterRent’s debt brings the value of the deal up to $4bn.
InterRent is one of the country’s largest purpose-built rental operators. Based in Ottawa, the REIT has a portfolio of 123 rental communities comprising over 13,000 units in Ontario, Québec and British Columbia.
InterRent has a 40-day go-shop period beginning on May 28 during which it may solicit superior proposals from other parties. CLV and GIC can then choose to match those proposals.
The deal lays out termination fees that would need to be paid if it does not proceed. Approximately $49m or $79m would be payable to CLV and GIC if the agreement is terminated either before or during the go-shop period. A reverse termination fee of $89m would be payable to InterRent if the agreement is terminated in certain circumstances.
CLV Group is an Ottawa-based real estate asset manager. Mike McGahan is president, chief executive and controlling shareholder. He is also the executive chair of the board of InterRent.
GIC is a Singapore-based sovereign wealth fund established in 1981 to manage the country’s foreign reserves.
