TORONTO, Cananda - A compromise has been reached by two rival groups that have been competing to buy Primaris Retail Real Estate Investment Trust (TSX:PMZ.UN), one of Canada's largest shopping mall operators.
Under the agreement, the KingSett consortium will acquire 18 Primaris properties — worth about $1.9 billion in total, including assumed debt.
Meanwhile, the rest of Primaris will be acquired by its preferred buyer — H&R Real Estate Investment Trust (TSX:HR.UN).
H&R is offering Primaris unitholders $27.98 per unit — about 65 cents per share above a previous friendly agreement between the two income trusts.
Through that part of the deal, H&R will acquire 17 existing Primaris shopping centres plus nine other properties that Primaris has agreed to purchase.
H&R has agreed to pay up to $1.28 billion of the purchase price in cash and the rest in units of the real estate trust.