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Summit Agrees to $4B Takeover by ING

TORONTO-Netherlands-based ING buys out Summit REIT, which goes private in a deal totalling C$C3.37 billion ($3.96 billion). It reflects a 17.9% premium on yesterday's share price.

By Anita Howarth | Updated on August 31, 2006

(To read more on the industrial market, click here.)

TORONTO-Industrial specialist Summit Real Estate Investment REIT has agreed a C$C3.37-billion ($3.96-billion) takeover by global giant ING Real Estate. Summit is the fourth largest REIT by market value on the Toronto Stock Exchange and Canada’s largest owner of industrial investment property. It has properties in every province except Newfoundland. The deal will give ING a platform in Canada and boost its profile here. Properties will be held equally by ING Real Estate BV, based in the Netherlands, and ING Industrial Fund, a limited partnership that trades in Australia.

The proposed deal, announced after the markets closed Wednesday, is the result of an unsolicited offer made by a unit of ING Groep NV in June, Summit chief executive officer Lou Maroun says. It also reflects a premium of 17.9% on Wednesday’s closing price of shares in Summit and analysts suggest it could provide a new benchmark for valuations in the REIT market.

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