REIT Deals Watch: Milestone Apartments Completes C$200 Million IPO

REIT Deals Watch: Milestone Apartments Completes C$200 Million IPO
7th March 2013

**Milestone Apartments**

Milestone Apartments REIT(TSE:MST.U) announced on March 6 that it has completed its initial public offering of 20 million units at a price of C$10.00 apiece. The offering raised some C$200 million (₤129 million) and was underwritten by a syndicate co-led by CIBC and BMO Capital Markets. The REIT has granted the underwriters an over-allotment option, exercisable any time up to 30 days following the sale, to buy an additional three million units at the offering price. The REIT used the net proceeds from the IPO to acquire an undisclosed interest in Milestone Multifamily Investors from MileSouth Apartment Portfolio.

The REIT will be making monthly cash distributions to its unit holders starting April 15. The first distribution will be C$0.04543 per unit for the period from the date of the IPO closing to March 31.
Milestone Apartments is an open-ended REIT with a portfolio of 52 multifamily garden-style residential properties located throughout the Southeast and Southwest US.

**Cole Credit Property**
Cole Holdings, a manager of more than 2,000 US commercial buildings, agreed on March 6 to be bought out by Cole Credit Property Trust III, one of the real estate investment trusts it sponsors. The non-listed REIT will make an initial payment of $20 million (₤13.2 million) in cash and 10.7 million shares of its stock for Cole Holdings, which manages more than $12 billion (₤7.96 billion) for some 160,000 individual investors. The combined entity will be called Cole Real Estate Investments and will seek floatation on the New York Stock Exchange.

“CCPT III will be able to increase its dividend payout and intends to now pursue the listing of its common stock to achieve greater liquidity and superior access to the capital markets,” Leonard Wood, chairman of a special committee of Cole Credit’s board, said in a statement.
Cole Credit Property Trust III is the owner of about 1,000 single-tenant industrial, office and retail properties in the US. The REIT is externally managed by affiliates of Cole Holdings.

**Mapletree Greater China Commercial Trust**
Shares in Mapletree Greater China Commercial Trust (SGX:MAGIC), a REIT backed by Singapore state investor Temasek Holdings, rose to S$1.0350 in their debut on the Singapore Stock Exchange. The trust priced the IPO at S$0.93 per unit, at the top of its marketing range. At that price, the REIT would yield 5.6 percent for the financial year ending in March 2014 and 6.1 percent for the following year. The returns are higher compared to the average of 5.05 percenton retail REITs and 4.82 percenton office REITs listed in Singapore for the past 12 months.
Temasek will remain the largest shareholder of Mapletree Greater China Commercial Trust with a 35 percent stake in the REIT.
!m[Cole Credit Property Buys Out Cole Holdings, Mapletree’s Newest Trust Surges In Post-IPO Trading, Safeway Considers REIT Structure](/uploads/story/1580/thumbs/pic1_inline.png)
**Safeway**
Supermarket owner Safeway (NYSE:SWY) is exploring bundling its Canadian property assets into a REIT, a company executive said at a meeting with analysts on March 6.
Loblaw, Canada’s largest grocer, said in December it planned to put the majority of its property assets into a real estate investment trust and some investors are advocating for Safeway to follow suit.
Safeway has already determined that its US assets and its Property Development Centres subsidiary are not good candidates for a REIT conversion, the company executive explained at the meeting.
Safeway’s share price slid by 1.48 percent to $23.94 in New York on March 6.
**Milestone Apartments REIT’s share price was C$10.01 as of 07.03.2013, 07.25GMT.**
**Mapletree Greater China Commercial Trust REIT’s share price was S$1.0350 as of 07.03.2013, 07.25 GMT.**
**Safeway’s share price was $23.94 as of 07.03.2013, 07.35 GMT.**

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