Ivanhoé Cambridge and Cominar Real Estate Investment Trust confirmed today the closing of the transaction announced August 26, 2014, thereby concluding Cominar’s acquisition of Ivanhoé Cambridge’s interests in 10 shopping centres, three office buildings and one industrial property for $1.24 billion. The sale of the Rockland retail property in Town of Mount-Royal, Quebec, is not included in the transaction at this time because it is subject to a right of first refusal in favour of a third party.
As also announced August 26, Ivanhoé Cambridge becomes owner of 8.4% of Cominar’s trust units, an investment of $250 million. Ivanhoé Cambridge becomes Cominar’s largest unitholder.
“This transaction is a key element in the implementation of our business plan which calls for the strategic refocusing of our investments,” said Daniel Fournier, Ivanhoé Cambridge’s Chairman and Chief Executive Officer. “The capital generated by this transaction can be recycled to invest in our properties in Quebec and across Canada, and our investment in Cominar allows us to support a leading Quebec company that has the necessary expertise to ensure the success of these properties.” Mr. Fournier added: “I am pleased that the vast majority of the employees affected by this transaction have been able to keep their jobs and I want to thank all those who are leaving us today for their loyalty and their commitment and wish them the very best of success.”
As part of the implementation of its business plan, Ivanhoé Cambridge also recently sold Kildonan Place in Winnipeg, Manitoba, and Lynden Park Mall in Brantford, Ontario.
Under final terms of the transaction, 104 employees of the properties sold have been transferred to Cominar. In addition, following close consultations between Ivanhoé Cambridge and Cominar, some 15 employees reporting to the regional offices or head office, and whose responsibilities were linked to the properties affected, will also be able to continue their career at Cominar.
Finally, Ivanhoé Cambridge confirms that about 60 Other positions have been eliminated within the organization, either because they became non-essential following recent transactions, or as part of organizational adjustments made in various sectors of the Company, or because of voluntary departures and retirements.
LIST OF PROPERTIES:
55 University Avenue (Toronto, Ontario)
3055 boul. Saint-Martin Ouest (Laval, Quebec)
Carrefour Frontenac (Thetford Mines, Quebec)
Carrefour Rimouski (Rimouski, Quebec)
Carrefour Saint-Georges (Saint-Georges, Quebec)
Centre Commercial Rivière-du-Loup (Rivière-du-Loup, Quebec)
Centropolis (Laval, Quebec)
Dixie Outlet Mall (Mississauga, Ontario)
Édifice de la Haute-Ville (Quebec City, Quebec)
Galeries Rive-Nord (Repentigny, Quebec)
Le 505 Parc Technologique (Quebec City, Quebec)
Les Galeries de Hull (Gatineau, Quebec)
Les Rivières (Trois-Rivières, Quebec)
Mail Champlain (Brossard, Quebec)