Summit REIT’s $400M in Transactions

Summit REIT, one of Canada’s largest publicly traded real estate investment trusts, recently completed over $400 million in transactions.
Following Summit’s successful completion of a public offering of 3.4 million units at a price of $12.40 per unit for total proceeds of $42.78 million in July 2000, it used the net proceeds for general business purposes and for the acquisition of certain new properties located in the province of Quebec from Caber Capital Inc. and its related companies. Summit was represented by Gary Kissack, Susan Guttman, Ramandeep Grewal and Michael Winton of Goodman and Carr LLP.

The lead underwriter was BMO Nesbitt Burns, Inc., and the syndicate included CIBC World Markets Inc., RBC Dominion Securities Inc., Scotia Capital Inc., TD Securities Inc., HSBC Securities (Canada) Inc., National Bank Financial Inc. and Trilon Securities Corporation. The underwriters were represented by Deborah Alexander, Carl Deluca and Steven Solursh (corporate) and Paul Morassutti, Rod Davidge and Jack Cook (real estate) of Osler, Hoskin & Harcourt LLP.

In conjunction with the July public offering, Summit completed a credit facility with the Bank of Montreal in the amount of $25 million. The proceeds of the credit facility will be used for general business purposes and for the acquisition of new properties. Summit was represented by Michael Winton and Renata Rizzardi of Goodman and Carr. The Bank of Montreal was represented by Jeffrey Alpert of Fogler, Rubinoff LLP.

Also in conjunction with the public offering completion, Summit acquired six industrial properties in the province of Quebec from Caber Capital Inc. and its related companies, completed on July 25, 2001. The purchase price for these industrial properties was $23.5 million. Summit was represented by Michael Winton of Goodman and Carr and Richard Burgos of Langlois, Gaudreau, as Quebec counsel. Caber Capital was represented by Doug Benson and Carl Schwebel of Macleod Dixon LLP and Luc Mercier of Mercier Leduc s.e.n.c., as Quebec counsel.

Summit successfully completed a further public offering of 4.75 million units for a price of $13.40 per unit for total proceeds of $63.65 million on September 28, 2001. The net proceeds were used to acquire various industrial estates from Slough Estates Canada Limited. Summit was represented by Gary Kissack, Susan Guttman, Ramandeep Grewal, Leslie Giller and Michael Winton of Goodman and Carr. The lead underwriter for this offering was BMO Nesbitt Burns, and the syndicate included CIBC World Markets, RBC Dominion Securities, Scotia Capital, TD Securities, HSBC Securities (Canada), National Bank Financial and Trilon Securities. The underwriters were represented by Deborah Alexander, Carl Deluca and Matthew Golden (corporate) and Paul Morassutti and Rod Davidge (real estate) of Osler, Hoskin & Harcourt.

On October 19, 2001, Summit acquired six industrial estates, comprising 121 buildings from Slough Estates Canada Limited for a purchase price of approximately $184 million. Summit was represented by Michael Winton, Laurence Geringer, Steven Watson, Mark Mincer, Tony Kiru and John Hermann of Goodman and Carr. The legal team for Slough Estates was led by Roger Pead, and included Anneli LeGault, Peter Hand, David McCutcheon, Karen Ray, Maggie Brady, Andrea Centa, Scott Burke, Michael Beairsto and Rachael Solursh of Fraser Milner Casgrain LLP in Toronto. Paul Mantini of Bennett Jones LLP in Toronto, represented bondholders holding mortgage bonds secured by certain of the acquired properties. CIBC provided financing to Summit.

Summit REIT now owns 230 high-quality properties in Canada and in the U.S. containing over 14.2 million square feet of leaseable space.
Lexpert Copyrights © Thomson Reuters Canada Limited