Commercial real estate investment and asset management company Starlight Investments and private equity real estate investment firm KingSett Capital have announced that they have entered into an arrangement agreement to acquire Northview Apartment REIT.
Under the arrangement, unitholders of the Northview Apartment REIT will receive cash consideration of $36.25 per trust unit of the REIT, subject to the option for unitholders to continue participating in a publicly listed, closed-end fund. The transaction is valued at approximately $4.8 billion, including net debt.
Read more: Northview Apartment REIT reports notable Ontario strength
“This transaction provides Northview unitholders with a premium above Northview's all-time high unit closing price, with the option of continuing to invest alongside Starlight and KingSett in what we believe will be an attractive, publicly-listed, newly formed, high yield, multi-residential fund,” said Daniel Drimmer, president and chief executive officer of Starlight Investments. “We look forward to building on Northview's tenant focus by maintaining high-quality, well-operated and sustainable buildings. Starlight, which will operate the Northview properties, has high regard for Northview's management and intends to retain substantially all of Northview's site level employees and operational staff, as well as its offices in Calgary and Toronto.”