GE Real Estate to acquire Canadian portfolio for $2.4b.GE Real Estate, a unit of GE Commercial Finance, and Dundee REIT REIT See: Real Estate Investment Trust REIT See real estate investment trust (REIT). announced that they have executed a definitive agreement whereby Dundee REIT's operating subsidiary An operating subsidiary is a business term frequently used within the United States railroad industry. In the case of a railroad, it refers to a company that is a subsidiary but operates with its own identity and rolling stock. will sell its portfolio of real estate assets located principally in Ontario, Quebec and Newfoundland to GE Real Estate for approximately $2.4 billion CDN (Content Delivery Network) A system of distributed content on a large intranet or the public Internet in which copies of content are replicated and cached throughout the network. . As part of this transaction, GE Real Estate has agreed to purchase $165 million of outstanding units of Dundee REIT, which will give GE Real Estate an approximate 18% equity interest in Dundee REIT following completion. Dundee REIT will continue to own $1.5 billion of real estate assets in Western Canada. Dundee REIT will apply the proceeds from these two transactions to offer to purchase units from its unitholders. "This transaction is consistent with equity deals we've completed around the world," said Alec Burger, senior vice president, at GE Real Estate. "It gives us a high-quality portfolio of real estate assets in a number of dynamic and rapidly growing cities. We have long been a real estate investor A real estate investor is someone who actively or passively invests in real estate. An active investor may buy a property, make repairs and/or improvements to the property, and sell it later for a profit. in Canada and this helps us accelerate our presence in this market. We look forward to working closely with the Dundee team to complete this transaction." "We believe that this is the ideal time for this transaction. Dundee REIT has performed extremely well over the last two years and is among the most successful commercial REITs," said Michael Cooper, vice chairman and CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. of Dundee REIT. "This transaction provides many benefits for Dundee REIT and its unitholders. This transaction also demonstrates the intrinsic value Intrinsic Value 1. The value of a company or an asset based on an underlying perception of the value. 2. For call options, this is the difference between the underlying stock's price and the strike price. of the Dundee portfolio, the Dundee executives and its employees." Katherine Lee, managing director, Canada at GE Real Estate, added, "Canada is among the top real estate markets in the world and the Dundee REIT portfolio is made up of a large number of well-positioned assets in strong growth markets. "GE Real Estate has a successful track record of tremendous growth in Canada and this deal is evidence of . our commitment to continued growth in Canada. We're looking forward to working with Dundee and growing this relationship." Genuity Capital Markets and McCarthy Tetrault LLP LLP - Lower Layer Protocol acted as advisors to GE Real Estate. |
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