Clarke buys Ravelin REIT
Canadian Clarke Inc. acquired struggling Ravelin Properties REIT (trading at $0.02) via a 2.5M‑share deal, adding roughly 6.2 million square feet of office space across North America and Europe and cutting Ravelin’s loan‑to‑value from 94.2% to 68.5% (x.com). The move is a material balance‑sheet repair for Ravelin and a big portfolio add for Clarke—watch re‑rating if occupancies and cashflow stabilize (x.com).
The Arrangement values Ravelin at about C$1.1 billion including assumed debt and produces a pro‑forma combined entity valued near C$1.7 billion. (newswire.ca)) Ravelin unitholders will receive approximately 0.582 Clarke common shares per 1,000 REIT units, while debentureholders will receive about 14.562 Clarke shares per $1,000 principal and early consenting debentureholders will share an aggregate 150,000 Clarke shares. (newswire.ca)) Post‑transaction ownership is expected to leave existing Clarke shareholders with roughly 83.8% of the combined company and former Ravelin securityholders with about 16.2%. (rttnews.com)) Both boards, a special committee of Ravelin trustees and supporting lenders have approved the arrangement and the parties say the deal is expected to close in the second quarter of 2026. (bisnow.com)) Ravelin has been operating under financing stress: it stopped payments on its 9.00% convertible subordinated debentures in March 2024 and disclosed an inability to repay a maturing loan with a $29 million principal plus roughly $5 million of unpaid interest. (bisnow.com)) The agreement leaves secured debt intact and covers a portfolio of about 45 assets, including roughly 1.3 million square feet across three Chicago office properties, about 750,000 square feet of Irish office space and multiple properties in the Toronto area. (bisnow.com))
