Canadian Real Estate Investment Trusts (REITs) continue to raise large amounts of capital for an anticipated increase in investment over the the second half of this year.
Scott's Real Estate Investment Trust announced today that it has entered into an agreement to sell, on a bought-deal basis, $20 million (all prices Canadian) of convertible unsubordinated debentures. National Bank Financial Inc., and Dundee Securities Corporation are leading the investor syndicate that is underwriting the offering.
Bloomberg reports that Artis Real Estate Investment Trust (AX-U CN), the owner of commercial properties in Western Canada, has agreed to sell 3.4 million shares for $9 each to raise about $30 million. The announcement boosted the Artis REIT unit price to a 10-month high closing price of $9.48 on Monday. Artis had 33.5 million units outstanding as of Aug. 31.
Meanwhile, shopping-centre owner Primaris Real Estate Investment Trust (PMZ-U CN) has announced it will issue at least $75 million in debentures convertible into trust units at a unit price of $16.70.
Primaris REIT units closed Monday at $14.
According to Avison Young brokers, REITs have been busy raising capital as they clean up their balance sheets, pressures related to the global financial meltdown subside, and yield rates justify more investment. The increased efforts to raise capital are viewed as signs of increasing investor confidence.
They coincide with forecasts that more attractive deals in all asset classes will come on the market in the next six to 12 months.
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment