Milestone ApartmentsReal Estate Investment Trust and InvescoLtd. affiliate MileSouth Apartment Portfolio LP have closed MileSouth'ssecondary offering ofMilestone Apartments trust units for gross proceeds of C$181.5 million.
All proceeds were paid to MileSouth; Milestone Apartments didnot receive any proceeds from the offering.
MileSouth sold an aggregate of 11 million trust units of theREIT, including the full exercise of the underwriters' overallotment option, ata price of C$16.50 per unit, the companies said March 31.
Following the sale, MileSouth owns 815,000 units of the REIT,representing an estimated 1.1% ownership stake, down from 15.6% before the completionof the offering.
Because its ownership stake fell below 10%, following the closingof the offering, MileSouthno longer has the right to require Milestone Apartments to include units held bythe investor in any future offerings undertaken by the REIT. MileSouth's right torequire the REIT to use reasonable commercial efforts to file a prospectus qualifyingunits held by the investor for distribution also was terminated with closing ofthe offering.
In addition, MileSouth's right to nominate one trustee to theREIT's board of trustees was eliminated. Accordingly, the investor's nominee, JayHurley, is not expected to stand for re-election as a trustee at the REIT's annualgeneral meeting.
The offering was co-led by BMO Capital Markets and CIBC, withthe former serving as the sole book runner.