RioCan Real Estate Investment Trust assumes investors really want yield.
The REIT launched a $125-million bought deal after the market closed Monday at a 1.2 per cent discount, or $20.75 per unit. That's on a day when the Toronto Stock Exchange was effectively flat and the Dow was down 140 points.
It's aggressive pricing for such a choppy market, especially when there are few recent deals to use as precedents.
RioCan will use the proceeds to fund property acquisitions. Canadian real estate investment trusts have been active on that front lately, but RioCan is particularly interested in properties south of the border.
RBC Capital Markets, TD Securities Inc. and BMO Capital Markets led the offering.
Tim Kiladze