Plazacorp raises offer for Key REIT to top rival Huntingdon bid

Key REIT says Plazacorp Retail Properties Ltd. has raised its friendly takeover offer for the real estate trust to top a rival bid from Huntingdon Capital Corp.

Plazacorp has offered $8.35 per unit in stock and cash for Key REIT, up from an earlier proposal of $8 per unit.

Like Plazacorp's earlier proposal, the amount of cash is limited to about half the $124-million offer for the Key REIT units, while the remainder would be paid in shares of the Fredericton-headquartered property company.

Including Key REIT debt to be assumed under the deal, Plazacorp's offer is worth $325 million.

Huntingdon raised its offer for Key REIT to $8 per unit in cash and stock; however, its offer did not put a limit on the amount of cash available. Huntingdon already owns 5.5 per cent of Key REIT's outstanding units.

Key REIT units sold for $8.06 before trading was halted on the Toronto Stock Exchange pending the announcement.