Shareholders of Pure Industrial Real Estate Trust (PIRET) will decide at a special meeting called for March 23 whether to approve Blackstone Property Partners‘ (BX-N) $3.8 billion bid to take the trust private.
Management sent out notice of the meeting last week, along with an information package about the pending acquisition.
Blackstone’s all-cash bid for PIRET (AAR-UN-T) was announced on Jan. 9, after several months of negotiation between the parties. Blackstone had approached PIRET with an initial offer during the fall of 2017, according to a circular release by PIRET.
The final bid offers $8.10 per share, which when announced was a 21 per cent premium on PIRET’s closing share price on Jan. 8. It also represents a 27 per cent premium to what PIRET considers its consensus NAV value of $6.40 per share.
The transaction has the unanimous support of a special committee of independent trustees, as well as PIRET’s full board of trustees. It will also require the approval of holders of at least 66 2/3 per cent of PIRET’s shares who vote at the meeting (either in person, or via proxy).
On Monday, PIRET announced two leading independent proxy advisory firms, Institutional Shareholder Services and Glass, Lewis and Co. both recommended unitholders of the trust vote for the resolution.
The special meeting will take place at 11 a.m. on March 23, at the offices of Goodmans LLP at 333 Bay Street, Suite 3400, in Toronto.
PIRET has been one of the most aggressive, and fastest-growing Canadian investment trusts since its inception a decade ago. As of August 2017, the Vancouver-based PIRET owned 168 properties in seven Canadian provinces (British Columbia, Alberta, Saskatchewan, Manitoba, Ontario, Quebec and New Brunswick) and seven U.S. states.
About 33 per cent of its 22.7 million feet of gross leasable space was in Ontario, while 32 per cent was in its American portfolio.
PIRET also has a history of consistent distributions to shareholders. From an initial monthly distribution of $0.025 per unit in 2007 ($0.30 annually), the company increased to $0.026 late in 2012 ($0.312 annually) and maintained that rate through the announcement.