PURE INDUSTRIAL RE (OTCMKTS:PDTRF) is an investment trust that owns and operates income-producing industrial properties across Canada, as well as in key distribution and logistics markets in the United States. The company’s stock has gone on a tear following news of an all-cash buyout by Blackstone.
Blackstone is a global real estate investing firm which has approximately $111 Billion (USD) in investor capital under management. Blackstone’s portfolio includes hotel, office, retail, industrial and residential properties in the US, Europe, Asia and Latin America, including the well-known Hilton Worldwide.
PURE INDUSTRIAL RE (OTCMKTS:PDTRF) announced today that it has entered into an arrangement agreement with an affiliate of Blackstone Property Partners (“Blackstone”), pursuant to which Blackstone will acquire all of the outstanding trust units of PIRET for $8.10 per Unit in an all-cash transaction valued at $3.8 billion including debt.
The Transaction price of $8.10 per Unit represents a 21% premium to the closing price of PIRET Units on the TSX on January 8, 2018, the last trading day prior to the announcement of the Transaction, a 22% premium to PIRET’s 30-day volume-weighted average Unit price on the TSX for the period ending January 8, 2018 and a 27% premium to the current research consensus Net Asset Value estimate of $6.40 per Unit.
Commenting on the Transaction, Rick Turner, Chairman of PIRET’s Board of Trustees and Chairman of the Special Committee of independent Trustees formed to supervise the negotiation of the Transaction said: “The Trust has accomplished tremendous growth in the ten years since the initial public offering in August 2007. Since inception, we have generated a total return in excess of 345% and we have built a platform that has made us a leader in the Canadian industrial REIT space. The Board of Trustees believes that the all-cash Transaction provides significant value for our Unitholders and unanimously recommends that they vote in favour of the Transaction.”
“I am extremely proud of my team’s accomplishments over the past several years,” added Kevan Gorrie President and CEO of the Trust. “Blackstone is a highly reputable and strategic owner and one of the world’s most active investors in logistics real estate. We look forward to further building out our platform.”
“We are excited to be acquiring PIRET, one of the premier Canadian industrial REITs, as a continuation of our global strategy to acquire high-quality logistics assets in key urban markets. The management team has done an excellent job building the portfolio and we look forward to working together going forward,” said Tyler Henritze, Head of North America Acquisitions for Blackstone Real Estate.
Blackstone will be making this investment through Blackstone Property Partners (BPP), its Core+ real estate investment unit. BPP targets substantially stabilized office, industrial, multifamily and retail assets.
The Transaction has the unanimous support of the Special Committee, as well as the full Board of Trustees of PIRET. The Board of Trustees, after receiving the unanimous recommendation of the Special Committee and in consultation with its financial and legal advisors, has unanimously determined that the Transaction is in the best interests of PIRET and fair to Unitholders and is unanimously recommending that Unitholders vote in favour of the Transaction. (Source: PR Newswire)
PDTRF is new to us here on Street Register, but with this huge occurrence, being bought out by a multinational real estate firm, is more than enough to draw our attention in a big way. Based on the sudden eruption of activity in the stock, it would appear the investment community would agree. Keep it locked on Street Register for updates, and we’ll deliver important developments on PDTRF as they unfold. In the meantime, if you’ve yet to sign up for our 100% free newsletter, do so now! Just enter your active email address into the box below and submit!
Disclosure: No one at Street Register has been compensated in any way for the publishing of this article, nor do we hold any position in PDTRF stock, short or long.