REIT company InterRent set for acquisition by CLV Group, in conjunction with GIC, in a $4 billion all-cash deal.
In a significant move, InterRent Real Estate Investment Trust (REIT) has announced an all-cash transaction with Carriage Hill Properties Acquisition Corp, valued at approximately $4 billion. The deal, which represents a 35% premium to InterRent's unaffected closing unit price on the TSX as of March 7, 2025, and a 29% premium to InterRent's 90-day VWAP on the TSX as of May 26, 2025, is set to reshape the Canadian real estate landscape.
GIC, a leading global investment firm, is uniquely positioned to back this deal, with a long-term, disciplined approach to investing and a wide range of asset classes and active strategies globally. Headquartered in Singapore, GIC has a global talent force of over 2,300 people in 11 key financial cities and has investments in over 40 countries.
The transaction includes a "Go-Shop" period of 40 days during which InterRent may actively solicit, evaluate, and enter into negotiations with third parties. However, this period ended on July 7, 2025, and with its conclusion, non-solicitation provisions in the Arrangement Agreement are now in effect, restricting InterRent from soliciting other bids or proposals.
InterRent unitholders (excluding Retained Interest Holders) will receive $13.55 per unit in cash, a range determined by a Formal Valuation provided by National Bank Financial. Gowling WLG (Canada) LLP is acting as legal counsel to InterRent, while Skadden, Arps, Slate, Meagher & Flom LLP is counsel to GIC in connection with the joint venture arrangements.
InterRent expects to continue to pay its regular monthly distribution per unit through closing of the transaction. The deal is subject to approval by at least 66 2/3% of the votes cast by unitholders, as well as other customary closing conditions. The Board of Trustees of InterRent unanimously recommends that unitholders vote in favor of the transaction.
BMO Capital Markets is acting as financial advisor to InterRent, while Scotiabank is acting as financial advisor to the Purchaser. The Bank of Nova Scotia is acting as sole underwriter on the credit facilities in support of the acquisition. Goodmans LLP and Stikeman Elliott LLP are acting as legal counsel to CLV Group and GIC, respectively. LaBarge Weinstein LLP is counsel to CLV Group in connection with the joint venture arrangements.
A special meeting of unitholders to consider the transaction is expected to be held in Q3 2025. Completion of the transaction is expected to occur in late 2025 or early 2026. The deal will result in InterRent being de-listed from the TSX and applying to cease to be a reporting issuer.
Regulatory approvals required for this transaction are not specified in the available search data. Norton Rose Fulbright Canada LLP is acting as legal counsel to the Special Committee, but information about fairness opinions related to this transaction is not mentioned in the available search data.
This deal marks a significant step for InterRent REIT, adding meaningful value to its investments and securing its future in the hands of a global investment powerhouse like GIC.
- The transaction with Carriage Hill Properties Acquisition Corp, involving InterRent Real Estate Investment Trust (REIT), will be financed by GIC, a global investment firm with a wide range of asset classes and active strategies across the world.
- GIC's involvement in the deal is expected to reshape the Canadian real estate landscape, signifying a major step forward for InterRent REIT.
- To ensure the security of the deal, the Bank of Nova Scotia is acting as the sole underwriter on the credit facilities in support of the acquisition.
- The deal's completion could potentially lead to significant changes in InterRent's business operations, including de-listing from the TSX and ceasing to be a reporting issuer.News, business, industry, finance, investing, security, cloud, infrastructure, performance
