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Goodmans Publications

Mergers and Acquisitions Involving Canadian REITs

March-30-2015

Lawyer William (Bill) Gorman, Stephen Pincus
Area Commercial Real Estate, Corporate Finance and Securities, Mergers and Acquisitions, REITs and Income Securities, Private Equity

Summary

The period from 2010 through 2014 was a very active one in the Canadian REIT sector.  During this time, 30 new REITs completed their initial public offerings and/or listed on a Canadian stock exchange, and a number of Canadian REITs merged with other REITs or were taken private.  For 2015, with expectations that interest rates in Canada may stay low for an extended period, some analysts and other market participants expect higher levels of activity in the REIT sector and believe that opportunities for strategic acquisitions or mergers involving Canadian REITs may increase.  In addition, with the decline in the Canadian dollar over the past year, U.S. and foreign acquirors may look to Canada for merger and acquisition opportunities involving Canadian REITs.

The summary below discusses some of the unique features of Canadian REITs that should be considered in an M&A transaction and provides an overview of two common structures used to implement Canadian REIT mergers.

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