WINNIPEG, MB, Oct. 24, 2021 /CNW/ - Artis Real Estate
Investment Trust ("Artis" or the "REIT") (TSX: AX.UN) announced
today that a consortium led by Canderel Real Estate Property Inc.
and including Artis, partnerships managed by the Sandpiper Group,
and FrontFour Capital Group LLC (the "Consortium") has,
through a newly-formed entity, entered into an arrangement
agreement to acquire Cominar Real Estate Investment Trust
("Cominar"), with Cominar unitholders, other than certain Cominar
unitholders that are members of the Consortium, receiving
consideration of $11.75 in cash per
unit, (the "Transaction"). The Consortium intends to retain
portions of Cominar's retail portfolio, as well as components of
Cominar's office portfolio, and has entered into agreements to sell
Cominar's industrial portfolio to Blackstone and a portfolio
comprised of certain of Cominar's retail and office assets to the
Group Mach. Koch Real Estate Investments, LLC, and Artis will also
be providing preferred equity for the Transaction.
The Transaction, which is expected to close in the first quarter
of 2022, has been recommended by both the Board of Trustees of
Cominar and its Special Committee and remains subject to the
approval of Cominar unitholders, court and required regulatory
approvals and customary closing conditions.
Artis has committed a total of up to $214
million to the Transaction, which includes participation in
multiple aspects of the Consortium's overall capital structure,
including $100 million of junior
preferred units that carry a distribution rate of 18% per annum and
up to $114 million in common equity
units.
"This transaction is an important step in implementing the next
phase of our new vision and strategy," said Samir Manji, President and Chief Executive
Officer of Artis. "We're pleased to collaborate with this group of
experienced real estate investors in an opportunity that aligns
with our long-term objectives and that we anticipate will generate
strong annual returns on our overall capital commitments. This
initiative also reflects the nature of opportunities and
investments that we look forward to pursuing in the future with
other potential investors and partners."
Ben Rodney, Chair of the Board of
Trustees of Artis, added "Our Business Transformation Plan,
announced just seven months ago, is working. On the heels of
unlocking over $700 million on the
sale of Artis' GTA industrial portfolio, our management team,
working with Sandpiper Group, has identified opportunities that can
compound unitholder returns through this multi-tiered and accretive
investment strategy."
On March 10, 2021, Artis announced
a new vision and strategy for the REIT – to build a best-in-class
asset management and investment platform focused on growing net
asset value per unit and distributions for investors through debt
repayment, return of capital and value investing in real estate. As
part of this strategy, Artis committed to deploying capital into
strategic investments in portfolio companies and concentrating its
ownership in the highest and best return opportunities in an effort
to maximize long-term value for unitholders.
Artis is a diversified Canadian real estate investment trust
with a portfolio of industrial, office and retail properties in
Canada and the United States. Artis' vision is to build a
best-in-class asset management and investment platform focused on
growing net asset value per unit and distributions for investors
through debt repayment, return of capital and value investing in
real estate.
Cautionary Statements
This press release contains forward-looking statements. For this
purpose, any statements contained herein that are not statements of
historical fact may be deemed to be forward-looking statements.
Without limiting the foregoing, the words "expects", "anticipates",
"intends", "estimates", "projects", "seeks", and similar
expressions or variations of such words and phrases that state that
certain actions, events or results ''may'', ''would'' or ''will''
occur or be achieved are intended to identify forward-looking
statements. Particularly, statements regarding the terms and
conditions of the Transaction and Artis' participation therein, the
timing of the Transaction, Artis' return of capital and value
investing strategies, building Artis into a best-in-class asset
management and investment platform focused on value investing in
real estate, the REIT's ability to execute its strategy, the REIT's
ability to maximize long-term value and anticipated returns are
forward-looking statements. Forward-looking statements are based on
a number of factors and assumptions which have been used to develop
such statements, but which may prove to be incorrect. Although
Artis believes that the forward-looking statements in this press
release are based on information and assumptions that are current,
reasonable and complete, these statements are by their nature
subject to a number of factors that could cause actual results to
differ materially from management's expectations and plans as set
forth in such forward-looking statements, including, without
limitation, the following factors, many of which are beyond the
Artis' control and the effects of which can be difficult to
predict, including the possibility that the proposed Transaction
will not be completed on the terms and conditions, or on the
timing, currently contemplated, and that it may not be completed at
all, due to a failure to obtain or satisfy, in a timely manner or
otherwise, required unitholder, court and regulatory approvals and
other conditions of closing necessary to complete the Transaction
or for other reasons; risk related to tax matters; and, credit,
market, currency, operational, liquidity and funding risks
generally and relating specifically to the Transaction, including
changes in economic conditions, interest rates or tax rates. For
more information on the risks, uncertainties and assumptions that
could cause the Artis' actual results to differ from current
expectations, refer to the section entitled "Risk Factors" of
Artis' Annual Information Form for the year ended December 31, 2020 as well as Artis' other public
filings, available at www.sedar.com. Artis cannot assure
investors that actual results will be consistent with any
forward-looking statements and Artis assumes no obligation to
update or revise such forward-looking statements to reflect actual
events or new circumstances. All forward-looking statements
contained in this press release are qualified by this cautionary
statement.
SOURCE Artis Real Estate Investment Trust