Clarke to buy Ravelin REIT
Clarke Inc. agreed to acquire Ravelin Properties REIT for CAD 1.2 billion, signaling continued consolidation in the Canadian REIT market (marketscreener.com). The deal underscores ongoing M&A as REIT managers reposition portfolios for yield and scale (marketscreener.com).
The transaction will be completed by a court‑approved plan of arrangement under which Clarke will acquire all outstanding Ravelin units and the REIT’s 9.00%, 5.50% and 7.50% convertible unsecured subordinated debentures. (newswire.ca) Holders of Ravelin units will receive approximately 0.582 Clarke common shares for each 1,000 REIT units, while REIT debentureholders will receive about 14.562 Clarke shares per C$1,000 principal and early consenting debentureholders will share an aggregate 150,000 Clarke shares. (seekingalpha.com) Clarke and multiple outlets value the transaction at roughly C$1.1 billion on a debt‑inclusive basis and say the combined pro‑forma enterprise value would be about C$1.7 billion. (renx.ca) The companies say the deal is expected to close in the second quarter of 2026, subject to unitholder and debentureholder votes, court approval and Toronto Stock Exchange listing conditions. (connectcre.ca) Ravelin entered the sale process after reporting a debenture default and governance turmoil that included the departure of activist‑backed chair George Armoyan and formation of a special committee to review strategic alternatives. (renx.ca) Ravelin’s portfolio comprises roughly 50 commercial properties across Canada, the U.S. and Ireland, and the REIT recently closed on the remaining 25% interests in two Greater Toronto Area assets, bringing its GTA holdings to about 1,636,265 square feet. (costar.com) Among disclosed liabilities, Ravelin noted a CIBC loan for 120 South LaSalle with US$84 million outstanding that matured August 31, 2025, a financing pressure point referenced in its recent restructuring disclosures. (newsfilecorp.com)
