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Dundee Industrial REIT Said to Seek C$176 Million in Canada IPO

Dundee Industrial Real Estate Investment Trust (0590454D) seeks to raise about C$176 million ($178 million) in an initial public offering to buy industrial sites across Canada, according to two people familiar with the sale.

Dundee Industrial REIT, created by a unit of Dundee Real Estate Investment Trust (D-U), plans to sell trust units for C$10 each yielding between 6.5 percent and 7 percent, said the people, who declined to be identified because the plans aren’t public. A message left with Michael J. Cooper, Dundee REIT’s chief executive officer, wasn’t immediately returned.

Dundee Industrial REIT plans to buy 86 light industrial properties in seven Canadian provinces that are owned or co- owned by Dundee REIT, the company said in an Aug. 17 filing. The sites, used for warehousing and light manufacturing, have 6.64 million square feet of gross leasable area, according to the Toronto-based company.

“The initial properties will provide us with significant scale in the industrial real estate sector in Canada and will serve as a platform from which we will seek future acquisition opportunities in major industrial markets,” the company said.

Scott Hayes, previously the chief operating officer of Pure Industrial REIT (AAR-U), is CEO of Dundee Industrial, the filing said.

Toronto-Dominion Bank (TD), Canada’s second-biggest lender, is leading a group of banks on the sale, which is expected to close in early October. Dundee Properties LP and its subsidiaries may own as much as 50 percent of Dundee Industrial after the sale closes, the company said in a statement.

Canadian companies have raised $1.3 billion in initial stock sales this year, 45 percent less than the same period a year ago, and the slowest eight-month start since 2008, according to Bloomberg data. Dundee Industrial would be the second-biggest Canadian-listed IPO this year, following the C$212.3 million sale of Argent Energy Trust (AET-U) on Aug. 1, Bloomberg data show.

To contact the reporter on this story: Doug Alexander in Toronto at dalexander3@bloomberg.net

To contact the editor responsible for this story: David Scheer at dscheer@bloomberg.net

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