ING Real Estate Canada Trust, a subsidiary of ING Real Estate, has announced a public offer for all issued and outstanding units of Summit Real Estate Investment Trust, Canada's largest owner of industrial investment property and the fourth largest REIT listed on the Toronto Stock Exchange.
The offer, at CAD 30 per unit, reflects a premium of 18% to the 30 August closing price and values the company at €1.5 billion (CAD 2.2 billion). Including the assumption of existing Summit debt, the total value of the transaction equals €2.4 billion (CAD 3.4 billion). Summit's Board of Trustees has unanimously approved the public offer and has recommended holders to tender their units.
The offer is being made by ING Real Estate Canada Trust, a newly formed subsidiary of ING Real Estate. On completion of the transaction, ING Industrial Fund (an Australian listed property trust managed by ING Real Estate) will take a 50% equity interest in the Canadian fund valued at €575 million (CAD 818 million). ING Real Estate intends to progressively sell its remaining 50% equity interest, valued at €575 million (CAD 818 million), to third-party institutional clients over the following twelve months. The remaining sums to complete the offer have been raised through non-recourse financing.
The Offer will be subject to customary conditions including acceptance of the offer by unit holders owning not less than 66 2/3% of the units on a fully-diluted basis, required regulatory approvals, the absence of a material adverse change with respect to Summit REIT and certain other conditions.
- Summit is Canada's largest industrial property owner with over 300 properties
- Offer of CAD 30 per unit reflects an 18% premium to the closing price of 30 August 2006 and values Summit at €1.5 billion (CAD 2.2 billion)
- Total transaction value is €2.4 billion (CAD 3.4 billion) including assumed debt
- Summit Board unanimously recommends offer to unit holders
- Summit to be delisted upon closing