Cominar Real Estate Investment Trust boosted its stake in Canmarc Real Estate Investment Trust and plans to make an offer for the rest of the company to increase its property ownership in Canada.
Cominar, Quebec province’s largest commercial-property owner, bought 3.1 million units of Canmarc, raising its stake to 15.1 percent and making it the company’s second-biggest shareholder, Cominar said in a statement today.
Cominar will offer to buy the outstanding units of Canmarc for C$15.30 ($14.83) per share in cash, 15 percent more than the Nov. 25 closing price, according to the statement. Canmarc shareholders may also elect to receive 0.7054 of a Cominar unit for each share they own. A maximum of 16 million units of Quebec City-based Cominar are available for exchange.
Canmarc will “diligently assess the current situation and will fully consider any offer and communicate the REIT’s views to its unitholders,” Karen Prentice, the Montreal-based company’s chairman, said in a separate statement today. Prentice told shareholders not to take any action on the proposal.
“Given the REIT was not for sale and that it continues to successfully execute on its business plan, it is unreasonable to ask the REIT to respond to their proposal within a 48-hour window,” she said in Canmarc’s statement.
Cominar owns 269 properties in Canada, including office, retail and industrial buildings. Canmarc owns retail, office, industrial and multifamily real estate throughout Canada.