CALGARY — Leben Real Estate Investment Trust, a Calgary property owner, says it has struck a binding deal with Whiterock Real Estate Investment Trust to sell eight of Leben's nine properties for $80-million.
The price tag is in cash, $22.8-million in Whiterock units and $11.4-millon in convertible debentures, Leben announced Monday.
The deal gives Leben a stake in the publicly traded Whiterock REIT and gives Whiterock properties in fast-growing western Canada.
“Whiterock REIT has a strong operating platform with a management team that has demonstrated the ability to create unitholder value,” Leben CEO Shariff Chandran said in a statement.
“Whiterock's strong tenant base, which is heavily weighted towards Ontario and Quebec, coupled with the existing long-term leasing profile, provides stable and growing cash flows. The strategic sale of assets to Whiterock will provide Leben with an initial 9.2 per cent ownership in Whiterock with an additional eight per cent following the conversion of the debentures.”
“In addition, the Leben assets provide Whiterock with a solid platform to enhance Whiterock's ability to expand into the high-growth western Canadian market.”
