Having announced the spin-off of its retail portfolio into a new Artis Retail REIT earlier this month, Artis REIT this week announced a private placement as part of its ongoing debt reduction strategy.
The trust announced that it would issue series D senior unsecured debentures for gross proceeds of CAD 250 million.
The debentures will bear interest at a rate of 3.824% per annum and will mature on September 18, 2023. They are being offered on a best efforts agency basis by a syndicate of agents led by BMO Capital Markets and Scotia Capital Inc., as joint lead bookrunners, and RBC Dominion Securities Inc. as additional joint lead. The offering is expected to close on or about September 18, 2020, subject to satisfaction of customary closing conditions.
As well as the retail portfolio spin-off and debt reduction strategy, Artis has also be undertaking a gradual disposal of non-core assets. Since announcing its disposition programme in November 2018, Artis REIT has completed approximately $800 million in asset sales, with a further $550 million of sales planned.
Artis REIT is a diversified Canadian real estate investment trust investing primarily in office and industrial properties in Canada and the United States. Artis REIT’s commercial property portfolio includes 115 industrial and 59 office properties encompassing a total of 21.0 million square feet of gross leasable area.