Inovalis Real Estate Investment Trust (the “REIT”) completed its initial public offering of trust units, raising gross proceeds of $105,000,000. A total of 10,500,000 trust units were sold at a price of $10.00 per trust unit.
The REIT has granted to the underwriters of the offering an option to purchase up to an additional 15 per cent of the trust units sold at closing of the offering at a price of $10.00 per trust unit for a period of 30 days after closing of the offering, which, if exercised in full, will increase the total gross proceeds of the offering to approximately $120,750,000.
The offering was underwritten by a syndicate of underwriters led by Desjardins Securities Inc. and including GMP Securities L.P., Macquarie Capital Markets Canada Ltd., Laurentian Bank Securities Inc., UBS Securities Canada Inc., Manulife Securities Incorporated, Burgeonvest Bick Securities Limited, Industrial Alliance Securities Inc. and Mackie Research Capital Corporation.
The net proceeds will be used by the REIT to indirectly acquire a portfolio of income-producing properties that are currently being managed by Inovalis S.A., with the balance to be used for general trust purposes. This portfolio consists of four office properties in France and Germany, comprising 529,267 square feet (49,170 square metres) of gross leasable area. Inovalis will indirectly retain an approximate 12.3 per cent ownership interest in the REIT on a fully exchanged basis (approximately 10 per cent if the over-allotment option is exercised in full) through the ownership of trust units and exchangeable securities of a subsidiary of the REIT, which exchangeable securities are economically equivalent to, and exchangeable for, trust units of the REIT.
Goodmans LLP represented the REIT with a team that included Allan Goodman, Mark Spiro and Brad Hennick (corporate/securities) and Alan Bowman and Jarrett Freeman (tax). Luxembourg counsel to the REIT was Dandois & Meynial with a team that included Michael Dandois and Olivia Kirsch. French counsel to the REIT was Winston & Strawn LLP with a team that included Jean-Pierre Collet, Florence Bilger, Florence Naudin and Benoit Bernard. German counsel to the REIT was Clifford Chance with a team that comprised Thorsten Sauerhering, Dominik Engl, Florian Schwemmlein and Thomas Reischauer.
Blake, Cassels & Graydon LLP represented the underwriters with a team that included William Fung, Eric Moncik, Lindsay Hooper and Bryana Lee (corporate/securities) and Chris Van Loan, Sabrina Wong and Andrew Spiro (tax). The underwriters were represented in France by Gide Loyrette Nouel A.A.R.P.I. with a team comprising Bertrand Oldra, Guillaume Jolly, Nadege Nguyen, Denis Charles, Alexandre Bochu, Philippe Huang and Stéphanie Toubol and by Romuald Sachet, notary, partner of the French Notarial Office of Allez & Associés. German counsel to the underwriters was Noerr LLP with a team that included Gregor Barbers, Jan Bossert, Rene Dubois, Elisabeth Dworschak, Georg Edelmann, Christian Johnen, Lutz Enno Werner and David Zafra Carollo.