Canada’s SmartCentres targets $200 mln in trust unit offering

Canadian real estate investment trust SmartCentres is aiming to collect approximately $200 million in placement trust units offering.

SmartCentres REIT offered to divest 6.4 million variable voting units on a bought deal basis at a price of $31.25 per unit to a syndicate of underwriters co-led by CIBC Capital Markets.

The underwriters have also been given a 30-day over-allotment option to purchase up to an additional 960,000 units at the same price. The move will close on or about, January 23, 2019, subject to SmartCentres obtaining all regulatory approvals.

With the net proceeds, SmartCentres will partially repay amounts currently drawn on its credit facilities to fund its previously announced development programs, the other proceeds will be used for future acquisitions, developments, capital expenditures and for general trust purposes.