Canadian real estate investment trust InterRent Real Estate Investment Trust has entered into a definitive arrangement agreement to be acquired by Carriage Hill Properties Acquisition Corp., a newly formed entity jointly owned by CLV Group and GIC, in a transaction valued at approximately CAD 4 billion, including net debt assumption.
Under the terms of the agreement, InterRent unitholders (excluding certain Retained Interest Holders) will receive CAD 13.55 per unit in cash. This offer represents a 35% premium over InterRent’s unaffected closing unit price on the TSX as of March 7, 2025—the last trading day prior to media speculation—and a 29% premium to the 90-day volume-weighted average price (VWAP) as of May 26, 2025.
The Board of Trustees of InterRent unanimously recommends that unitholders vote in favor of the transaction. Both the Board and a Special Committee have secured fairness opinions from BMO Capital Markets and National Bank Financial Inc. (NBF). Additionally, the Special Committee commissioned a formal valuation from NBF.
A notable feature of the deal is the inclusion of a 40-day “Go-Shop” period, during which InterRent may actively solicit, evaluate, and negotiate alternative acquisition proposals from third parties.
InterRent plans to issue a detailed proxy circular soon, outlining the Board’s recommendation and voting instructions for unitholders.
Brad Cutsey, CEO and Trustee of InterRent, commented, “We are pleased to offer immediate and certain premium value to our unitholders through this all-cash transaction with CLV Group and GIC, while retaining the opportunity to explore superior proposals during the go-shop period. Our Board and management team are proud of the operational platform and portfolio we have built in Canada’s strongest urban rental markets. We have repositioned our assets into high-quality communities, driving industry-leading growth and value creation.”
Mike McGahan, President and CEO of CLV Group, added, “We are delighted to partner with GIC on this transformative transaction. By combining CLV’s 50 years of operating expertise with GIC’s reputation as a long-term global investor, we aim to continue delivering exceptional value to residents through operational excellence across our combined teams.”
InterRent expects to maintain its regular monthly distributions to unitholders until the transaction closes.
This acquisition marks a significant milestone for InterRent, offering its investors a premium exit and positioning the combined entity to capitalize on growing urban rental markets in Canada. The transaction is subject to customary closing conditions and regulatory approvals.
