REIT InterRent to be Purchased by CLV Group, in Collaboration with GIC, for $4 Billion in Cold Hard Cash Deal
InterRent Real Estate Investment Trust (InterRent REIT) has entered into a definitive agreement for an all-cash acquisition by Carriage Hill Properties Acquisition Corp., valued at approximately $4 billion. The transaction, announced on May 27, 2025, offers InterRent unitholders a premium, although the exact percentage is not explicitly stated.
Market data suggests a meaningful premium over the trading price, with InterRent's units having a net asset value (NAV) of around $12.50 per unit while trading near $10.50 in mid-2025.
The mandatory "go-shop" period, allowing InterRent to seek alternative bids, concluded on July 7, 2025, with no better offers received. This indicates the Board likely supports the deal, although no official recommendation has been made public.
The transaction is subject to various conditions, including regulatory approval, unitholder approval, and the satisfaction of any outstanding contractual requirements. The Bank of Nova Scotia serves as the sole underwriter on the credit facilities in support of the acquisition.
InterRent unitholders will receive $13.55 per unit in cash, representing a 35% premium to the unaffected closing unit price on the TSX as of March 7, 2025, and a 29% premium to the 90-day VWAP on the TSX as of May 26, 2025.
A formal valuation of the fair market value of the units of InterRent has been prepared in accordance with MI 61-101. Copies of the updated fairness opinions, Formal Valuation, and additional details regarding the terms and conditions of the Transaction will be included in the management proxy circular to be sent in connection with the Transaction and filed by InterRent on its profile on SEDAR+ at www.sedarplus.ca.
The transaction includes a "Go-Shop" period of 40 days during which InterRent may actively solicit and evaluate third-party acquisition offers. NBF has delivered a revised Formal Valuation to the Special Committee, estimating the fair market value of the units to be in the range of $12.75 to $14.00 per unit.
The transaction is still expected to close in late 2025 or early 2026, pending court approval, regulatory approvals, consents and approvals from Canada Mortgage and Housing Corporation ("CMHC") and certain existing lenders.
LaBarge Weinstein LLP remains counsel to CLV Group in connection with the joint venture arrangements, and Skadden, Arps, Slate, Meagher & Flom LLP continues to act as counsel to GIC in connection with the joint venture arrangements. Norton Rose Fulbright Canada LLP continues to act as legal counsel to the Special Committee, while Gowling WLG (Canada) LLP remains as legal counsel to InterRent.
Scotiabank continues to act as financial advisor to the Purchaser, and Goodmans LLP and Stikeman Elliott LLP continue to act as legal counsel to CLV Group and GIC, respectively.
In summary, the $4 billion all-cash acquisition of InterRent REIT by Carriage Hill Properties is moving forward, subject to various conditions and expected to close in late 2025 or early 2026. The transaction offers a premium to InterRent unitholders, although the exact percentage is not explicitly stated. The go-shop period ended without any better offers, suggesting the Board likely supports the deal. A formal valuation of the fair market value of the units of InterRent has been prepared, and further details will be disclosed in the management proxy circular.
- The news of the $4 billion all-cash acquisition of InterRent Real Estate Investment Trust (InterRent REIT) by Carriage Hill Properties promises a premium to unitholders, with the transaction still subject to various conditions including regulatory approvals.
- The cloud infrastructure of Carriage Hill Properties' business operations will be a point of interest in the upcoming acquisition, as the company aims to enhance its overall performance in the industry.
- In view of the security concerns involved, the Bank of Nova Scotia serves as the sole underwriter on the credit facilities in support of the acquisition, ensuring the financing aspect of the transaction.
- As business alliances are established, legal counsel such as LaBarge Weinstein LLP, Norton Rose Fulbright Canada LLP, Skadden, Arps, Slate, Meagher & Flom LLP, Gowling WLG (Canada) LLP, Goodmans LLP, and Stikeman Elliott LLP, serve in key roles to ensure the smooth execution of the acquisition agreement.
