Telsec and Firm Capital Acquire Melcor REIT Units Amidst Tender Offer
Deal News | Nov 08, 2024 | Globenewswire
FC Private Equity Realty Management Corp. and Telsec Property Corporation have made significant strides in acquiring trust units of Melcor Real Estate Investment Trust through a combination of Toronto Stock Exchange purchases and a mini-tender offer. Since late October 2024, the Offerors have jointly accumulated approximately 3.7 million trust units, representing a substantial 12.8% stake in Melcor REIT. The acquisition aims to thwart Melcor Developments Ltd.'s Take Under Offer, which presents a stark disparity between the net asset value and the bid price per unit. Minority unitholders are urged to reject the Take Under Offer, which they consider undervalued and a potential loss for themselves. The Offerors are supported by Norton Rose Fulbright as legal advisors and Shorecrest Group for proxy and information services. The Tender Offer stands under specific terms, inviting minority unitholders to either sell their trust units or appoint proxy representatives at the upcoming unitholders' meeting scheduled for November 26, 2024.
Sectors
- Real Estate Investment Trusts (REITs)
- Private Equity
Geography
- Canada – Both the primary entities involved, Telsec and FC Private Equity Realty Management, are based in Canada, and the investment activities are centered in Toronto and Calgary.
Industry
- Real Estate Investment Trusts (REITs) – The article focuses on acquisitions involving trust units of Melcor REIT, emphasizing its relevance to the industry.
- Private Equity – FC Private Equity Realty Management Corp., a private equity firm, is actively involved in the strategic acquisition of Melcor REIT units.
Financials
- $8.70 – Net Asset Value (NAV) per Melcor REIT Trust Unit.
- $4.95 – Take Under Offer price per Trust Unit proposed by Melcor Parent.
- $75,000 – Anticipated fee for services provided by Shorecrest Group Ltd.
Participants
| Name | Role | Type | Description |
|---|---|---|---|
| FC Private Equity Realty Management Corp. | Bidding Company/Buyer | Company | A Toronto-based private equity investment firm specializing in real estate acquisitions. |
| Telsec Property Corporation | Bidding Company/Buyer | Company | A Calgary-based real estate developer involved in industrial, retail, office, and residential properties. |
| Melcor Real Estate Investment Trust | Target Company | Company | A real estate investment trust targeted by the acquisition offer. |
| Melcor Developments Ltd. | Vendor/Seller | Company | Parent company of Melcor REIT opposing the tender offer with a 'Take Under Offer'. |
| Shorecrest Group Ltd. | Proxy Advisor & Depositary | Company | Provides advisory services for proxy solicitation and depositary related to the tender offer. |
| Norton Rose Fulbright Canada LLP | Legal Advisor | Company | Acts as the legal advisor to the Offerors. |