Primaris REIT Concludes Successful $74.7 Million Equity Offering
Primaris Real Estate Investment Trust Completes Major Offering
Primaris Real Estate Investment Trust (TSX: PMZ.UN) has successfully closed its extensive public treasury and secondary offering of trust units. This event marked a significant step for the trust, as it raised $74.7 million, showing its robust standing in the market and commitment to expanding its portfolio.
Details of the Offering
The total of 4,803,294 Units were sold at a price of $15.55 each. This opportunity came about through a bought deal with a syndicate of underwriters, brilliantly co-led by notable financial institutions, including RBC Capital Markets and TD Securities. Primaris offered 2,516,011 Units in a treasury offering, generating approximately $39.1 million in gross proceeds. This effort was coupled with a secondary offering, where 2,287,283 Units were sold by the Canada Pension Plan Investment Board, resulting in about $35.6 million.
Purpose of the Proceeds
The net proceeds from the treasury offerings will primarily be directed towards reducing some of the debts accrued under Primaris' revolving credit. This strategic move will support the ongoing acquisition processes, particularly for properties like Les Galeries de la Capitale shopping mall, ensuring that the trust is well-positioned in the competitive market.
Compliance and Regulations
Primaris’ offering adhered strictly to Canadian regulatory frameworks, with the Units available in all provinces and territories. The offering is detailed in a prospectus supplement filed under the Trust's short-form base shelf prospectus issued earlier this month. Importantly, these Units neglect any registration under U.S. Securities Act, reinforcing the trust's compliance with international laws.
About Primaris Real Estate Investment Trust
Primaris stands out as Canada's only enclosed shopping center-focused real estate investment trust. With holdings across 38 properties and a value of around $4.1 billion, Primaris operates primarily in mid-sized growing markets. The trust benefits from a fully internal management platform that strengthens its position in the retail property sector. With considerable capital at its disposal, Primaris is geared to seize emerging market opportunities, heralding a transformative era in Canadian retail.
Frequently Asked Questions
What is the total amount raised by Primaris REIT in this offering?
Primaris REIT raised a total of $74.7 million through its recent offering.
Who were the main underwriters involved in this offering?
The offering was co-led by RBC Capital Markets, Desjardins Capital Markets, TD Securities, CIBC Capital Markets, and Scotiabank.
How will Primaris REIT utilize the proceeds from the treasury offering?
The proceeds will be primarily used to reduce debt from the Trust's revolving credit facility and support its acquisition strategy.
Can the Units be sold in the United States?
No, the Units have not been registered under the U.S. Securities Act and cannot be sold in the United States.
What distinguishes Primaris REIT in the Canadian market?
Primaris REIT is unique as the only enclosed shopping center-focused REIT in Canada, with significant assets in evolving mid-sized markets.
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