A Canadian-based Minto Apartment Real Estate Investment Trust (REIT) struck a deal to go private in a cash acquisition deal estimated at $2.3 billion, including debt. The deal will be implemented by an affiliate of Crestpoint Real Estate Investments in collaboration with the affiliate of the parent company Minto Group, as announced by the company on Monday.
Pursuant to an agreement, the unitholders of Minto Apartment REIT will receive $18 in cash per unit, marking a premium of approximately 32% on the last closing price of the REIT on the Toronto Stock Exchange. The transaction has got the approval of the board of trustees as well as a special committee of independent trustees formed to review the proposal.
Minto Group, which owns a stake of around 42.7% in the REIT's voting interest, has signed a voting agreement in support of the transaction, providing a high degree of comfort with regard to the approval process. A special meeting of unit holders to consider the proposed take private transaction is slated for March.
Commenting on this, Jonathan Li, the president and chief executive officer of Minto Apartment REIT, said that although it was great that the trust had been able to develop such a good quality portfolio of residential properties, it was hamstrung by challenges in capital market conditions with respect to their growth plans as an REIT. He said that with this deal, there would be more flexibility offered to administer this portfolio in a private capacity.
The transaction is expected to close in the second half of 2026, subject to unitholder approval, certain regulatory approvals, and certain closing conditions.
Minto Apartment REIT is engaged in the ownership and operation of a diversified group of multi-residential apartment properties located in major urban Canadian markets such as Toronto, Montreal, Ottawa, Calgary, as well as Vancouver. The trust has been targeting the more stable type of rental housing properties found in cities with a shortage of housing supply.
Founded in the year 2010, Crestpoint Real Estate Investments is an investment firm that concentrates on commercial real estate and debt investment. The firm manages over $11 billion worth of assets for institutional and high net worth individuals. The acquisition will allow the company to focus on investment in fundamental assets that produce revenue.
The deal is part of a broader trend of Real Estate Investment Trusts, or REITs, pursuing possible take-private transactions in the wake of volatile capital markets, interest rate increases, and a lack of capital accessibility in capital markets.
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