New Stock Arbitrage — Granite Real Estate Investment Trust

Granite is a Canadian-based Real Estate Investment Trust engaged in the acquisition, development, ownership and management of predominantly industrial, warehouse and logistics properties in North America and Europe.  Granite owns over 85 investment properties representing approximately 33 million square feet of leasable area.

Granite announced yesterday that it and Granite REIT Inc. have entered into an agreement to sell to a syndicate of underwriters on a bought deal basis 3,260,000 stapled units at a price of C$61.50 per Unit for gross proceeds to the REIT of approximately C$200 million. The offering is expected to close on or about April 30, 2019.

The REIT intends to use the net proceeds from the Offering to partially fund the potential acquisition of two properties, one industrial income producing property in Columbus, Ohio and one development property located in Calgary, Alberta for total expected costs (post development) of C$126.3 million (the “Acquisitions”), as well as to fund development costs associated with Granite’s previously announced Indiana development project and for general trust purposes.