Minto Group and Crestpoint Real Estate Investments Limited Partnership said they will form a new programmatic joint venture partnership and, at the same time, have agreed to acquire Minto Apartment Real Estate Investment Trust in a take-private transaction valued at approximately $2.3 billion.
Under the arrangement agreement, Crestpoint will acquire all outstanding trust units of Minto Apartment REIT not held directly or indirectly by Minto and certain senior officers for C$18.00 per unit in cash. The announced transaction value includes the assumption of net debt as well as the REIT units controlled by the retained interest holders and the Class B limited partnership units of Minto Apartment Limited Partnership held by Minto and certain affiliates.
Following the transaction, Minto and Crestpoint said the newly formed partnership will create a Canadian multi-family ownership, operating, and development platform focused primarily on long-term ownership of newer, purpose-built rental properties. The partners said the platform will also consider select value-add and repositioning opportunities and may pursue acquisitions of new-build, stabilized multi-family properties that could be co-developed over time.
Minto and Crestpoint described the partnership as long-term and programmatic, with both parties committing to provide additional growth capital beyond the seed portfolio that currently sits in the REIT. The partnership’s acquisition and development strategy is expected to focus on core Canadian markets, including Toronto, Vancouver, Calgary, Montreal, Ottawa, Victoria and Halifax, as well as other Greater Toronto Area-adjacent locations.
The partners said initial and future properties owned by the partnership will be jointly managed by Crestpoint and Minto, with Minto providing property management services. Minto will also provide development and construction management services for future development opportunities that meet the partnership’s investment criteria, with Crestpoint providing oversight.
TD Securities is acting as exclusive financial advisor to the partners and Torys is serving as legal counsel to the partners. McCarthy Tétrault is legal counsel to Crestpoint.
KEY QUOTES
“Minto is excited to announce this strategic transaction and partnership with Crestpoint – a best-in-class real estate investor with a shared vision and commitment to long-term success. We believe that this partnership will best enable Minto to execute on its strategic initiatives moving forward, while ensuring the company remains true to the core values it has upheld for over 70 years.”
Michael Waters, Chief Executive Officer, Minto Group
“We are thrilled and proud to announce this new partnership and transaction with Minto. This transaction will significantly enhance our multi-family exposure across the country while allowing us to work and grow alongside a successful and reputable partner that has decades of experience in the sector.”
Kevin Leon, President and Chief Executive Officer, Crestpoint
