REIT Watch: PMC Commercial Trust to Merge With CIM Urban REIT

on Jul 8, 2013

**United States**

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**PMC Commercial Trust to Merge With CIM Urban REIT** Monday July 8th: PMC Commercial Trust, a real estate investment trust that specializes in real estate financing primarily through first lien collateralized loans to small businesses, announced today it had agreed to merge with the private commercial REIT CIM Urban in an all-stock deal that gives CIM Urban control of PMC Commercial.

CIM Urban has a portfolio of real estate assets in high-quality urban markets across the U.S. The company is managed by a subsidiary of CIM Group, an investment firm with around $12 billion (₤8.05 billion) in assets under management.
According to the statement, PMC Commercial would give CIM Urban and its affiliates 22 million newly issued common shares and 65 million newly issued preferred shares. Each preferred share will be convertible into seven common shares, which means PMC Commercial will be issuing approximately 477 million common shares or about 97.8 percent of its outstanding stock.

PMC Commercial stockholders on record as of the business day prior to the deal’s closing will receive a special cash dividend of $5.50 per common share. The merger is expected to be completed sometime in the fourth quarter and the new firm will be distributing a quarterly cash dividend of $0.175.
**Hong Kong**
**New Century REIT Trims IPO by 66% and Raises HK$676 Million**

New Century REIT, a real estate investment trust backed by global asset management firm Carlyle Group, has raised HK$676 million (₤58.4 million) from a trimmed Hong Kong listing, after pricing the IPO at the bottom of the indicative range of HK$3.50-$4.20.
The REIT, which has a portfolio of four five-star hotels in mainland China, reduced the size of its IPO by 66 percent due to volatile market conditions. New Century sold 193 million shares instead of the originally planned 470 million shares. Standard Chartered and Morgan Stanley acted as joint global coordinators of the offering.

**CIBC Lowers Price Target on InnVest REIT**
CIBC analysts lowered their price target on InnVest REIT’s shares from C$5.25 to C$5.00 in a research report released on Thursday last week. CIBC currently has an outperform rating on the stock.
InnVest is a real estate investment trust with a portfolio of 134 hotels across Canada. The REIT also holds a 50 percent stake in Choice Hotels Canada, one of the largest franchisors of hotels in Canada.
!m[New Century REIT Raises HK$676 Million in Trimmed IPO](/uploads/story/3770/thumbs/pic1_inline.jpg)
**RBC Capital Gives “Sector Perform” on Melcor REIT**
RBC Capital initiated coverage on Melcor REIT’s shares on Friday last week, giving them a “sector perform” rating and a price target of C$11.00.
Melcor REIT is a real estate investment trust created for the purpose of acquiring and owning income producing properties in Western Canada. The REIT has a portfolio of 27 real estate assets with approximately 1.57 million sq. ft. of gross leasable area.


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