ING Real Estate Canada Trust, a subsidiary of ING Real Estate, offered to buy all issued and outstanding units of Summit Real Estate Investment Trust for C$3.4 billion (US$3.07 billion), according to an ING news release. ING values Summit's shares at C$2.2 billion, and ING would also assume the company's C$1.2 billion in debt. The deal is pending shareholder approval.
Summit's board of trustees unanimously approved the offer, according to a Summit statement. "As part of the review process, the board considered other alternatives available to Summit, including maintaining the status quo," board Chairman Allan Olson said in the Summit release. "We recommend that unitholders tender their units to the offer."
David Blight, CEO of ING Real Estate's investment management division, said in the same release that the proposed acquisition is part of ING's strategy to invest in industrial property.