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Minto Apartment REIT raises C$200M in IPO

Minto Apartment Real Estate Investment Trust closed its IPO of 13,794,000 trust units at C$14.50 per unit for gross proceeds of about C$200.0 million.

The trust granted a 30-day option for the underwriters to purchase up to an additional 2,069,100 units, proceeds from which will be used to reduce the retained interest held by a subsidiary of Minto Properties Inc. Full exercise of the option could raise the gross proceeds to up to C$230 million.

Minto Apartment units will begin trading under the MI.UN ticker on the Toronto Stock Exchange on July 3.

Net proceeds from the offering were used to acquire an initial portfolio of multiresidential rental assets in Canada from Minto Properties. The 22 assets offer 4,279 suites spread across Toronto, Ottawa, Calgary and Edmonton.

A unit of Minto Properties owns 22,928,510 class B units of the trust's Minto Apartment LP subsidiary as of the closing of the IPO, according to a release. The units are exchangeable for Minto Apartment units on a one-for-one basis, reflecting an aggregate approximate 62.4% ownership interest in the trust, or about 56.8% ownership interest upon the exercise of the overallotment option.

Minto Apartment intends to pay an initial distribution of 3.196 cents per unit for the period from July 3 to July 31, on Aug. 15. Subsequent monthly distribution of 3.416 cents per share will be made on or about Sept. 15.

The offering was underwritten by a syndicate of underwriters, with TD Securities Inc. and BMO Capital Markets as joint book runners, and including CIBC Capital Markets, RBC Capital Markets, Scotiabank, National Bank Financial Inc., Canaccord Genuity Corp., Desjardins Securities Inc., Raymond James Ltd. and Industrial Alliance Securities Inc.

Goodmans LLP serves as legal counsel to Minto Apartment and Minto Properties. Blake Cassels & Graydon LLP is acting as legal counsel for the underwriters.