OTTAWA — InterRent Real Estate Investment Trust has signed a deal to be acquired by a group including executive chair Mike McGahan and Singapore sovereign wealth fund GIC for about $2 billion.
Under the agreement, CLV Group and GIC will pay InterRent unitholders $13.55 per unit in cash. The transaction is valued at a total of about $4 billion including the assumption of net debt.
InterRent units were up almost 15 per cent at $13.58 in midday trading on the Toronto Stock Exchange on Tuesday.
In addition to his role at InterRent, which owns residential properties in B.C., Ontario and Quebec, McGahan is the chief executive and controlling shareholder of CLV Group.
The deal requires approval of a two-thirds majority vote by unitholders as well as a majority vote by unitholders, excluding CLV Group, its affiliates and any other unitholders required to be excluded.
It also requires court and regulatory approvals, consents and approvals from Canada Mortgage and Housing Corp. and certain existing lenders and the satisfaction of other customary closing conditions.
The agreement includes a "go-shop period" lasting from Wednesday until July 6, during which InterRent can try and attract better offers.
"We are pleased to provide immediate and certain premium value to our unitholders through this all-cash transaction with CLV Group and GIC, while also allowing InterRent to solicit superior proposals through a go-shop period of 40 days," said Brad Cutsey, InterRent's CEO and trustee.
Toronto-based activist hedge fund Anson Funds became the largest investor in InterRent earlier this year with a nine per cent stake.
"While we are pleased to see the InterRent board take a concrete step toward closing its valuation discount, we will see how the go-shop process unfolds as we believe there is potential for more value to be realized," Anson said in a statement after the acquisition was announced Tuesday.
This report by The Canadian Press was first published May 27, 2025.
Companies in this story: (TSX:IIP.UN)
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