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Dundee REIT to acquire Realex Add to ...

Dundee Real Estate Investment Trust is set to buy real estate investor and developer Realex Properties Corp. for $154.4-million in cash.



Dundee said Wednesday it is offering Realex shareholders $8.25 per share. The full enterprise value of Realex is pegged at $385-million, including the assumption of about $210-million in debt and some working capital.



Calgary-based Realex owns stakes in 24 office and industrial spaces in Canada. They include properties in Kitchener, Ont., Calgary, Edmonton, smaller cities in Alberta and British Columbia, and parts of Ontario's University of Waterloo.



The board of directors of both Dundee REIT and Realex - officers of which hold 49 per cent of Realex shares and have agreed to tender - have approved the deal.



The acquisition still needs approval of at least two-thirds of shareholders at a meeting expected to take place in January, as well as regulatory approval. The deal is expected to close by February.



Realex will include more information in a letter to shareholders that will be mailed next week.



Dundee units were up 21 cents at $29.70 in midday trading on the Toronto Stock Exchange. Realex shares were up 23 cents at $8.23 on the TSX Venture Exchange.



 

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