March 28 (Bloomberg) -- Inovalis Real Estate Investment Trust raised C$105 million ($103 million) in its Canadian initial public offering to invest in European office properties, according to two people familiar with the transaction.
Inovalis REIT sold 10.5 million units for C$10 each, yielding 8.25 percent, the top end of its marketed range, said the people, who asked not to be identified because the terms aren’t public.
The Toronto-based REIT plans to invest in three office properties in and around Paris and one property in Hanover, Germany, after the transaction closes, according to a Feb. 28 filing with Canadian regulators. Inovalis SA, which currently manages the properties, agreed to buy a 10 percent ownership in the REIT, the filing said.
Desjardins Securities Inc. led a group of investment banks on the sale. The banks have an option to sell an additional 15 percent, which would raise proceeds to C$120.8 million. A message left with David Giraud, chief executive officer of Inovalis REIT, wasn’t immediately returned.
Canadian companies have raised $630 million in 18 IPOs this year, the slowest start since 2011.
To contact the reporter on this story: Doug Alexander in Toronto at firstname.lastname@example.org