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Rubicon Associates is headed by a Chartered Financial Analyst with over 20 years of experience in the investment management industry focused on the analysis, investment and management of fixed income and preferred stock portfolios. Over the years, he has analyzed and invested in both public and... More
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  • Dundee REIT Sheds Industrial Property 7 comments
    Aug 27, 2012 9:50 PM | about stocks: DRETF

    From an article on Bloomberg:

    Dundee Industrial Real Estate Investment Trust seeks to raise about C$176 million in an initial public offering to buy industrial sites across Canada, according to two people familiar with the sale.

    Dundee Industrial REIT, created by a unit of Dundee Real Estate Investment Trust, plans to sell trust units for C$10 each yielding between 6.5 percent and 7 percent, said the people, who declined to be identified because the plans aren't public. A message left with Michael J. Cooper, Dundee REIT's chief executive officer, wasn't immediately returned.

    Dundee Industrial REIT plans to buy 86 light industrial properties in seven Canadian provinces that are owned or co- owned by Dundee REIT, the company said in an Aug. 17 filing. The sites, used for warehousing and light manufacturing, have 6.64 million square feet of gross leasable area, according to the Toronto-based company.

    "The initial properties will provide us with significant scale in the industrial real estate sector in Canada and will serve as a platform from which we will seek future acquisition opportunities in major industrial markets," the company said.

    The SEDAR filing is here.

    I might start doing more international REITs as they are underfollowed and give investors options.

    Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.

    Themes: REIT Stocks: DRETF
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Comments (7)
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  • In my opinion, the HEADLINE is completely backwards from information presented in the article. SHEDS ? No, they are
    initiating purchases of industrial properties.
    30 Aug 2012, 11:21 AM Reply Like
  • I am sorry. I didn't mean to infer the author Mr Terry had written the Headline. Obviously, this was not the case. The article was very informative.
    30 Aug 2012, 11:23 AM Reply Like
  • Author’s reply » No problem, but I did write the headline. The new industrial REIT is purchasing the properties from Dundee REIT - so, in effect Dundee is shedding industrial properties through creating an industrial REIT, IPOing it and selling its properties to it.
    30 Aug 2012, 09:13 PM Reply Like
  • Ok, Mr Terry, i will review your article again and pay closer attention.
    I took the headline to be a 'negative' event though you meant it in another way. i always enjoy and learn from your writings.
    Howard
    31 Aug 2012, 10:44 AM Reply Like
  • Hi Mr Terry
    I assume that when you are able to find out more about this new Reit you will write an additional article. That would be appreciated. My understanding is that by taking this action, the shareholders in the "old" Reit that previously owned the industrial properties now have the money that was paid by the investors in the new Reit ( IPO ). What I do not understand is why Dundee is separating the industrial properties in this manner, as opposed to simply splitting off the specific industrial properties into a new reit which is still
    owned proportionally by the same ( old) shareholders. is there an
    advantage to Dundee, which is of course, in effect, their shareholders. I currently am long a number of industrial Reits such as Pure in Canada, Stag in the US. and so forth, and would like as much info as i can get on this new Dundee Reit. Thank you for your guidance. Howard
    2 Sep 2012, 05:11 PM Reply Like
  • perhaps a call into investor relations is warranted. I agree with your observations, but I'll guess the reason(s) are tax related and nothing else.
    Let us know what you hear.

     

    (no position)
    27 Sep 2012, 10:38 AM Reply Like
  • just a additional bit of information not included in the article is that Dundee Reit is keeping ownership of up to ( almost ) 50% of the new Industrial Reit and selling their currently owned properties to the new Reit piecemeal, as some are co-owned with other financial entities.
    2 Sep 2012, 05:51 PM Reply Like
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