TORONTO, Oct. 3, 2016 /CNW/ - ELAD Canada Inc. ("ELAD") announced today that it has entered into an agreement to acquire, through an indirect subsidiary, 3,743,846 units of Agellan Commercial Real Estate Investment Trust ("Agellan"), a Toronto-based real estate investment trust which owns and operates a diversified portfolio of income producing industrial, office and retail properties in the United States and Canada. The transaction is expected to close on or about October 5, 2016. Agellan is listed on the Toronto Stock Exchange under the symbol "ACR.UN".
The units of Agellan ("Units") will be acquired by ELAD Genesis Limited Partnership, an indirect wholly owned subsidiary of ELAD, at a price of $9.82 per Unit, for an aggregate cash purchase price of $36,764,567.72. The Units will be acquired in a private sale with certain selling unitholders of Agellan.
As a result of the acquisition, ELAD will own or control, directly or indirectly, an aggregate of 3,743,846 Units, representing approximately 13.4% of the issued and outstanding Units. Prior to this acquisition ELAD did not own or control any Units.
"We believe that the units of Agellan Commercial REIT are currently undervalued and represent a compelling investment opportunity," said Rafael Lazer, Chief Executive Officer of ELAD, "We have been impressed with the real estate platform built by Agellan and believe that there is significant potential growth for unitholder value."
ELAD is acquiring the Units for investment purposes, and may acquire additional Units or may dispose of any or all of its Units, on the open market or otherwise, subject to various factors including ELAD's determinations from time to time as to whether the trading price of the Units adequately reflects the value of the Units in relation to Agellan's activities and future prospects. ELAD intends to engage with members of the board of directors of Agellan regarding Agellan, its business and prospects, board composition and potential means for enhancing unitholder value.
Agellan is located at 156 Front Street West, Suite 303, Toronto, Ontario, M5J 2L6. ELAD is located at 2235 Sheppard Ave. E., Suite 1700, Toronto, ON, M2J 5B5.
ELAD Canada Inc. pursues a corporate strategy to maximize asset and shareholder value. Established in 1997, the company entered the Canadian market by owning and providing asset management services for a significant real estate portfolio of varied asset classes that included approximately six million square feet of commercial space and over 17,000 residential units. More recently, the company has focused its activities in mid- and high-rise condominium development and master planned communities. ELAD Canada Inc. is part of the ELAD Group real estate conglomerate that owns income producing properties and has development projects spanning three continents. The group has developed successful condominiums, hotels and mixed-use projects and has made its mark as a significant developer of ultra-luxury properties in New York City. The ELAD Group is focused on the acquisition, development and conversion of architecturally significant residential and commercial properties in key markets throughout North America.
SOURCE ELAD Canada Inc.
For further information: please contact Rafael Lazer, Chief Executive Officer, by telephone at (416) 223-4403.