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FAM REIT Closes C$58.8 Mln IPO

Huntingdon Capital Corp. (HNT.TO) announced that FAM Real Estate Investment Trust or the "REIT", has completed its initial public offering of units raising gross proceeds of C$58.8 million. A total of 5.88 million units were sold.

Each Offered Unit consists of one trust unit in the capital of the REIT and one quarter of one Trust Unit purchase warrant of the REIT at a price of C$10.00 per Offered Unit. Each Warrant entitles the holder thereof to acquire one Trust Unit at an exercise price of C$10.50 per Warrant Unit at any time following closing of the Offering and prior to December 28, 2015. The Trust Units and Warrants commenced trading today on the Toronto Stock Exchange under the symbol "F.UN" and "F.WT", respectively.

The REIT used approximately C$48.5 million of the proceeds of the Offering, together with approximately C$6.2 million drawn under the REIT's revolving credit facility, to indirectly acquire a portfolio of 27 properties from Huntingdon.

Huntingdon said it has retained an approximate 30% interest in the REIT through the ownership of Class B limited partnership units of a subsidiary of the REIT, which are economically equivalent to, and exchangeable for, Trust Units, and holds a vendor take-back note issued by a subsidiary of the REIT in an amount of approximately C$9.2 million.

Huntingdon said it will provide strategic, asset management, administrative, property management, leasing, construction management and administrative services necessary to manage the day-to-day operations of the REIT and its assets pursuant to the terms of a management agreement entered into on closing of the Offering.

by RTTNews Staff Writer

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