True North Commercial REIT agreed to acquire five Canadian office properties for about C$106.1 million and launched a C$25 million bought-deal unit offering to partly fund the acquisitions.
The total purchase price of the properties represents a combined implied cap rate of roughly 6.9%.
According to a release, the properties include a 34,400-square-foot asset at 810 Blanshard St. in Victoria, British Columbia; a 120,200-square-foot property at 1595 16th Ave. in Richmond Hill, Ontario; a 148,500-square-foot property at 301 & 303 Moodie Dr. in Ottawa, Ontario; a 129,200-square-foot property at 36 and 38 Solutions Dr. in Halifax, Nova Scotia; and a 60,600-square-foot property at 231 Shearson Crescent in Cambridge, Ontario.
The company will fund the purchases through roughly C$28.5 million from its July bought-deal offering, around C$15.0 million from the fresh offering, nearly C$21.9 million in first mortgage financing on the Cambridge and Ottawa properties, and roughly C$47.6 million from a bridge facility on the other three properties it has agreed to acquire.
The bought-deal offering comprises 4.0 million trust units at C$6.28 apiece, with CIBC Capital Markets and Raymond James Ltd. leading a syndicate of underwriters.
The offering, which comes with a 30-day overallotment option for the underwriters to acquire a further 600,000 units, is expected to close on or about Oct. 20.