Cominar Real Estate Investment Trust agreed to acquire a portfolio of 15 Quebec and Ontario properties from a subsidiary of the C$214.7 billion (US$197 billion) Caisse de Depot et Placement du Quebec, Montreal, for C$1.63 billion.
The acquisition involves 11 retail properties, three office properties and one mixed-use property, said Cominar and Ivanhoe Cambridge, Caisse's real estate subsidiary, in separate news releases. The properties are valued at C$1.53 billion.
As part of the agreement, Ivanhoe Cambridge, already an investor in the REIT, will make a C$250 million equity private placement in the REIT, bringing its total stake to 8.5%, making it the largest shareholder.
The acquisition will increase assets in the Cominar REIT by 25% to C$8.1 billion.
Ivanhoe Cambridge managed C$40 billion in real estate assets as of Dec. 31, according to Caisse's website. Caisse oversees investments for Quebec pension funds and other government funds.