Elad Canada has completed a takeover bid of Agellan Commercial Real Estate Investment Trust (REIT) emerging as a significant player in the North American market. Total consideration of the transaction is over CAD $400 million.
Agellan’s portfolio of 44 stabilized income-producing properties are distributed throughout 11 high growth urban markets in the United States. The portfolio constitutes approximately 6 million sq. ft. of industrial and office properties, with an annual NOI of approximately CAD $53 million and an asset value of approximately CAD $680 million, reflecting a 7.8 per cent cap rate on the overall transaction.
Since its inception in 1997, Elad Canada, a part of the Elad Group global conglomerate, has focused its business in central Canada and the US, acquiring income producing properties and developing residential and mixed use projects in Toronto and Montreal, owning throughout the years close to 5.9 million sq. ft. of commercial space, 17,000 apartments and senior home units and successfully developing thousands of multifamily and condominium residential units.
“The acquisition is an important milestone for Elad Canada and a strategic step toward a continued increase of our footprint in the income-producing properties segment,” said Elad Canada CEO Rafael Lazer.
Before the acquisition, Elad Canada was the largest unitholder of the REIT holding approximately 19 per cent of the units.
Approximately 85 per cent of the REIT’s assets are classified as light industrial properties, which include, flex and show room, logistics and distribution centres. The remainder of the portfolio are office buildings. The current occupancy rate for the properties is approximately 97 per cent.
The tenant roster includes close to 250 local, regional and nationally-recognized companies such as General Motors LLC, Aldi, and United Natural Foods Inc.