The Toronto Stock Exchange conditionally approved Agellan Commercial REIT's planned listing of trust units in connection with its proposed management internalization plan.

The real estate investment trust is set to acquire certain assets of its external manager and will issue 1,045,296 exchangeable class B LP units to the manager, along with related special voting units. The class B units are exchangeable into trust units of the REIT at the option of the holder on a one-for-one basis.

Despite pending legal action from shareholders over the proposed internalization, the REIT reiterated that it does not require shareholder approval for the transaction.

The deal is expected to close in the fourth quarter.