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Minto Apartment Real Estate Investment Trust files for IPO

Ontario-based Minto Apartment Real Estate Investment Trust filed a preliminary prospectus for an IPO of units, which will be listed on the Toronto Stock Exchange.

The open-ended REIT will own and operate a portfolio of income-producing multi-residential rental properties in Canada's urban markets, according to the prospectus.

The company will indirectly buy a portfolio of 22 multi-residential rental properties from Minto Properties Inc. initially. The 98.0%-occupied portfolio comprises 4,279 suites and totals 3,540,070 square feet, spread across Toronto, Ottawa, Calgary and Edmonton. A May 22 appraisal estimated the total market value of the properties to be approximately C$1.18 billion, on a portfolio basis, including a portfolio premium of 5%.

Minto Apartment said it will use the IPO net proceeds to finance the acquisition of the properties.

Following the closing of the IPO, expected to occur in 2018, the company will have the capacity to purchase up to about C$220 million of assets without needing to access equity markets.

Minto Apartment noted that it signed a commitment letter with two Canadian banks for a secured revolving credit facility of up to C$150 million, to be provided at IPO close.

TD Securities Inc., BMO Nesbitt Burns Inc., CIBC World Markets Inc., RBC Dominion Securities Inc., Scotia Capital Inc., National Bank Financial Inc., Canaccord Genuity Corp., Desjardins Securities Inc., Raymond James Ltd. and Industrial Alliance Securities Inc. are the underwriters of the offering.

Goodmans LLP is serving as legal counsel to Minto Apartment and Minto Properties, while Blake, Cassels & Graydon LLP is acting as legal counsel to the underwriters.

Minto Properties is part of Canadian real estate developer Minto Group Inc.