Office real estate investment trust Allied Properties REIT launched a bought-deal offering of 6,342,000 units at C$41.00 apiece.
The offering, which is expected to generate gross proceeds of about C$260 million, includes a 30-day overallotment option for the underwriters to purchase up to a further 951,300 units.
About C$132 million of the net proceeds will be used to prepay the first mortgage on 151 Front St. West in Toronto, which is due to expire Nov. 1, 2019. The balance will be used to decrease amounts drawn on Allied's operating and acquisition line of credit.
Scotiabank, RBC Capital Markets and Goldman Sachs Canada Inc. are the joint book runners for the offering, which is slated to close on or about June 22.