Milestone Apartments REIT completes $143.9M public offering

Milestone Apartments Real Estate Investment Trust (the REIT) completed a public offering of 9,591,000 subscription receipts, inclusive of 1,251,000 subscription receipts issued pursuant to the exercise in full of the over-allotment option, on a bought deal basis, at a price of C$15.00 per subscription receipt for gross proceeds of approximately C$143.9 million. The syndicate of underwriters for the offering was co-led by BMO Capital Markets and CIBC, and included RBC Dominion Securities Inc., National Bank Financial Inc., Scotia Capital Inc., TD Securities Inc., GMP Securities L.P., Desjardins Securities Inc., Dundee Securities Ltd., Laurentian Bank Securities Inc. and Raymond James Ltd.

The REIT intends to use the proceeds from the offering to fund a portion of the acquisition of 15 properties currently owned by Landmark Apartment Trust, Inc. (Landmark). The REIT, together with Starwood Capital Group (Starwood), entered into a definitive agreement to acquire, by way of merger (the Acquisition), Landmark for US$8.17 per Landmark share in cash, representing a total enterprise value of approximately US$1.9 billion. The Acquisition, which is subject to customary closing conditions, including approval by Landmark’s shareholders, is expected to close in the first quarter of 2016. Pursuant to the Acquisition, the REIT will acquire a 100 per cent interest in 15 properties currently owned by Landmark, while Starwood will acquire Landmark’s interest in 63 properties, all of which will be property managed by the REIT.

The REIT was represented in-house by John Ascenzo, Corporate Counsel, and externally in Canada by Goodmans LLP with a team that included Stephen Pincus, Brad Ross and Emily Weizel (corporate/securities) and Jon Northup and Michael Royal (tax); and in the United States by Vinson & Elkins LLP with a team that included Mark Early, Neil Rajan and John Bell (corporate/securities) and James Meyer (tax).

The underwriters were represented by Davies Ward Phillips & Vineberg LLP in Canada with a team that included James Reid and Ryan Elger (corporate/securities) and Paul Lamarre (tax), and in the United States with a team that included Scott Fisher (corporate/securities) and Peter Glicklich and Heath Martin (tax).



Goodmans LLP Davies Ward Phillips & Vineberg LLP