Dundee REIT Acquires Whiterock REIT
|Areas||Banking and Finance Law, Commercial Real Estate, Corporate and Commercial, Corporate Finance and Securities, Mergers and Acquisitions, REITs and Income Securities, Tax|
Goodmans represented Whiterock Real Estate Investment Trust (Whiterock) in connection with Dundee Real Estate Investment Trust’s (Dundee) completion of its previously announced acquisition of Whiterock. The transaction was effected by way of takeover bid and a subsequent “qualifying exchange” in which all Whiterock units remaining outstanding after completion of the takeover bid were redeemed by Whiterock in exchange for Dundee units on a tax-deferred “roll-over” basis. In connection with the takeover bid, Whiterock unitholders received, at their election, either $16.25 in cash or 0.4729 units of Dundee REIT for total cash and non-cash consideration of approximately $590 million.
In connection with the acquisition, Dundee assumed the outstanding indebtedness under each of Whiterock’s outstanding debentures.
In order to fund the cash portion of the purchase price, Dundee arranged for a financing commitment in the amount of $375 million from TD Bank.
Dundee REIT is an open-ended real estate investment trust and provides high quality, affordable business premises. It is focused on owning, acquiring, leasing and managing mid-sized urban and suburban office and industrial properties. Dundee REIT’s portfolio currently consists of approximately 19.3 million square feet of gross leasable area across Canada.