TORONTO (Reuters) - Plazacorp Retail Properties PLZ.V said on Monday it has agreed to acquire Keyreit KRE_u.TO for roughly C$119 million ($116.4 million), a move that trumps an unsolicited bid from Huntingdon Capital HNT.TO and allows Plazacorp to expand its retail property footprint.
Marking a new round of consolidation among Canada's real estate investment trusts this year, Plazacorp said its cash and unit deal is worth C$8 per unit and has the backing of Keyreit's board of directors, which has been attempting to fend-off Huntingdon's unsolicited approach for the last two months.
"We have both specialized in smaller footprint retail properties, primarily in eastern and central Canada, so this is a great fit for us," said Plazacorp Chairman Earl Brewer, adding that the two REITs also each have Shoppers Drug Mart SC.TO as their largest tenant.
This is the second takeover battle involving Canadian real estate investment trusts in a span of two months.
A two-way battle for Primaris Retail REIT PMZ_u.TO was recently resolved after H&R Real Estate Investment Trust (HR_u.TO) and a consortium led by KingSett Capital agreed to jointly bid for the shopping center owner and carve up its assets.
Reporting by Euan Rocha; Editing by Alden Bentley