July 13, 2020 (TORONTO, ON) – Elad Group, the controlling shareholder of Elad Canada, announces on July 5th it has signed a non-binding letter of intent with Toronto-based Plaza Partners and U.S.-based Argent Ventures for an estimated total value of $608 million CAD. The value excludes a certain financial asset that is not being acquired as part of the deal.
As phase one of the transaction, 37 per cent of Elad Canada’s shares and 100 per cent of U.S. properties, San Michelle and Colonnade at Sawgrass, mostly owned by Elad Group, will be sold to the investors for a total of approximately $225 million CAD. A binding agreement is expected to be signed by the parties within 30 days.
Once the first phase of the transaction is complete, the agreement provides the buyers with the majority of the day-to-day management. Elad Canada is expected to maintain its current operations, senior management and key personnel.
“We are very pleased with this opportunity as Elad Canada continues to solidify its operations, including investment in income-producing properties and developing master-planned communities in Canada. The transaction process is progressing well, and we look forward to working with the experienced groups at Plaza Partners and Argent Ventures,” says Rafael Lazer, CEO of Elad Canada.
The agreement grants the option for the investors to acquire the remaining 63 per cent of Elad Canada’s shares no later than 30 months after the signing of the agreement as well as provides Elad Group with the option to force the acquisition of the remaining 63 per cent in several tranches starting from 18 months following the signing of the agreement. The agreement provides for payment of additional consideration tied to activities within Elad Canada’s portfolio for a total consideration of $608 million CAD.
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kg&a inc.
Samantha Lem
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ABOUT ELAD CANADA
ELAD Canada is a multi-billion dollar real estate development, investment and asset management company with best in class mixed-use developments and properties across Canada and the US. Backed by extensive international capital and benefiting from experience and in-depth knowledge of the industry, ELAD has a proven track record with creating large scale, multi-phase development projects, and along with Agellan Commercial a fully owned subsidiary, owns 7 million square feet of industrial, office and retail properties. For over 20 years, ELAD has shaped communities through leadership and collaboration and has focused on creating value to maximize returns on its income-producing properties. ELAD is made up of seasoned strategic thinkers who foster long-term relationships through listening to their communities and tenants, collaborating with all stakeholders, and engaging experts who share their passion for creating environments that make our lives better. Best known for its visionary approach at the award-winning, master-planned Emerald City in Toronto, ELAD is currently selling Galleria on the Park – its newest master-planned community – and launched Harmonia Condos at Cite Nature earlier this year. ELAD Canada is also currently working on Lansing Square, a 400,000 sq. ft. office complex on approximately 15 acres slated to be redeveloped as a mixed-use community. We foster relationships, we build communities and we invest in tomorrow; we transform our cities.
ABOUT PLAZA PARTNERS
Plaza Partners is a real estate developer and asset manager. Plaza focuses on rezoning and developing residential properties in strong urban locations within the Greater Toronto Area. Plaza’s current portfolio includes approximately four million square feet of potential density.
ABOUT ARGENT VENTURES
Argent Ventures is a vertically-integrated, diversified real estate investment and development firm specializing in opportunistic, and value-add transactions throughout the United States. Founded in 1997 and headquartered in New York City, the firm pursues debt- and equity-related investments in any asset class. Since its inception, Argent has purchased over $2.5 billion in real estate assets and debt instruments in major markets in the United States and Europe.
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