Retirement Residences Real Estate Investment Trust and CPL Long Term Care Real Estate Investment Trust yesterday announced that they have signed a definitive agreement in which Retirement REIT will acquire substantially all of CPL REIT's assets and liabilities.
CPL REIT unitholders will receive 1.2 units of Retirement REIT for each CPL REIT unit held.
Retirement REIT says it is Canada's largest provider of residential senior accommodation and related services. It owns or operates 80 retirement homes, primarily in Canada, with a resident capacity of 7,600.
Retirement REIT owns 4 per cent of CPL REIT and provides management and advisory services to that trust. It also owns Central Health Services, an in-home health care agency.
CPL REIT is the largest owner and operator of long-term care facilities in Canada, with a presence in the U.S. market. It owns or operates 73 long-term care facilities in Canada with a resident capacity of 9,500, and 20 homes in the United States, with a resident capacity of 2,200.
The Reichmann and Kuhl families and senior officers of the two investment trusts collectively hold 35 per cent of the Retirement REIT units and 26 per cent of the CPL REIT units, and have agreed to vote in favour of the transaction. After the merger, the families and affiliates will collectively own 28 per cent of the new Retirement REIT.
"The transaction is significantly accretive for Retirement REIT unitholders," said William Davis, chairman of Retirement REIT and a former premier of Ontario.
The deal remains subject to various conditions, including regulatory approvals and endorsement by the unitholders of each REIT at special meetings to be held April 8. The transaction is to close on April 30.