Agellan Commercial REIT Plans C$140 Million IPO

Agellan Commercial Real Estate Investment Trust is seeking to raise about C$140 million ($140.5 million) in an initial public offering in Toronto to buy office and industrial sites in Canada and the U.S., according to two people familiar with the transaction.

Agellan will sell units for C$10 each, according to a Nov. 15 regulatory filing. The IPO is expected to be priced next month, said the people, who declined to be identified because the terms aren’t public.

Agellan was formed to own and operate industrial, office and retail properties in the U.S. and Canada. The Toronto-based REIT plans to use the proceeds to buy 23 properties comprising 47 buildings with about 4.2 million square feet of space, mostly in Ontario and Texas.

Derek Dermott, a former Bank of Montreal investment banker, was appointed president, and its properties will be managed by Agellan Capital Partners, the company said in the statement. A telephone message left with Dermott wasn’t immediately returned.

Bank of Montreal and Canadian Imperial Bank of Commerce are leading a group of banks on the sale.