Dundee REIT announced Friday it plans to spin off its portfolio of 86 light industrial properties to a new trust to be called Dundee Industrial Real Estate Investment Trust.
The price for the portfolio will be determined in connection with the pricing of the initial public offering of Dundee Industrial REIT, Dundee said.
The units of Dundee Industrial REIT will be offered through a syndicate of underwriters led by TD Securities Inc.
Following the deal, Dundee Properties Limited Partnership and its subsidiaries are expected to own a significant interest in Dundee Industrial REIT.
Dundee Corp., which is the parent of the Dundee group, is expected to invest $21-million and Dundee REIT chief executive Michael Cooper will invest $9-million in Dundee Industrial REIT at the offering price.
Dundee REIT owns a portfolio of office and industrial properties across Canada.