IPC REIT Completes Offerings

IPC US Income Commercial REIT, Canada’s only real estate investment trust investing exclusively in U.S. commercial real estate properties, closed three financings between November 2002 and January 2003 raising approximately US$45.3 million.

On November 1, 2002, the REIT completed a US$20.1 million private placement of special warrants (exercisable for trust units) to Canadian and U.S. investors through CIBC World Markets Inc., as agent. Subsequently, the REIT completed a US$16.1 million public offering of trust units through an underwriting syndicate led by CIBC World Markets Inc. on December 30. Concurrently with the closing of the offering, PRF Holdings Inc., a corporation owned by the Paul Reichmann family members, indirectly invested US$7 million in IPC (US), Inc., the REIT’s principal U.S. holding company. On January 31, 2003, the underwriters of the offering exercised their over-allotment option, raising an additional US$2.1 million for the REIT. The proceeds of the offerings were used to repay indebtedeness incurred under the REIT’s acquisition facility to purchase three class A office buildings in Pennsylvania, Ohio and Kentucky during the second half of 2002.

Davies Ward Phillips & Vineberg LLP acted for the REIT, with a team that included Mitchell Finkelstein, Rosemary Newman, Jennifer Grossklaus and Jim Nikopoulos (securities) and Colin Campbell and Jonathan Tennant (tax) in Toronto, and Scott Tayne in New York provided U.S. securities law advice. Goodmans LLP acted for the agent and the underwriters, with a team that included Stephen Pincus, William Gorman and Grant McGlaughlin (securities) and Maureen Berry (tax).