Middlefield Canadian Income's investee company Pure Industrial Real Estate Trust (PIRET) has entered into an arrangement with an affiliate of Blackstone Property Partners under which Blackstone will acquire all of the outstanding trust units of PIRET.
The units are being bought for $8.10 in an all-cash transaction valued at $3.8 billion including debt.
The proposed acquisition of PIRET at $8.10 per unit represents a 21% premium to the closing price of PIRET units on the TSX on 8 January and has the unanimous support of the special committee, as well as the full board of trustees of PIRET.
PIRET, which is listed on the TSX, has been a long term holding of MCT's since 2010 and represents a 3.5% portfolio weighting of the fund's net asset value.
Dean Orrico, president, Middlefield International Limited, said: "We are delighted by the news that Blackstone Property Partners has entered into this arrangement agreement to acquire Pure Industrial Real Estate Trust, which has been one of MCT's core holdings for a considerable time. It is validation of the quality of investments within the MCT portfolio and confirms our positive view on the Canadian property market and the investment potential of Canada in general. The proposed exit price of $8.10 per unit represents a 78% premium on MCT's investment price."
At 9:44am: (LON:MCT) Middlefield Canadian INC PCC share price was -1.55p at 100.45p