Cominar REIT May Use IPO Proceeds to Acquire GE/RE Assets
Cominar Real Estate Investment Trust said it has closed its previously announced public offering of 11,640,300 units. The units include 1,518,300 units of Cominar which were issued upon the exercise of an over-allotment option and were sold to a syndicate of underwriters led by National Bank Financial and BMO Capital Markets for total net proceeds to Cominar of approximately $276 million, after deducting the underwriters’ fee and the estimated expenses of the offering.
The net proceeds of the sale of the units will be used to finance a portion of the GE Capital Real Estate acquisition previously announced or to pay down debt outstanding under current credit facilities and for general and trust purposes.
Indebtedness incurred under the credit facilities was used to finance Cominar’s acquisitions and investments and for general and trust purposes. The Units have been offered in all provinces and territories of Canada by way of a short form prospectus.
Cominar is the third largest diversified real estate investment trust in Canada and currently remains the largest commercial property owner in the Province of Quebec.