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IPC US REIT Looking for Buyer

TORONTO-The locally headquartered company invests exclusively in US commercial real estate and has a portfolio of 10.1 million sf in 35 class A office buildings.

By Brian K. Miller | Updated on January 31, 2007

TORONTO-IPC US Real Estate Investment Trust will solicit acquisition and merger proposals. The locally headquartered company invests exclusively in US commercial real estate. It went public in 2001 and now has a portfolio of 10.1 million sf in 35 class A office buildings. RBC Capital Markets and Banc of America Securities Canada Co. are acting as the REIT’s financial advisors during this process.

The REIT initiated a review of its property investments in August with the intention of taking advantage of favorable market conditions and disposing of some of the REIT’s non-core holdings. The company’s chairman Donald Macdonald says the move to sell or merge as a whole is the result of the review, which found “strong demand for high quality US real estate.” The Paul Reichmann family, which owns a 13.4% interest in the REIT, is supportive of the process.

IPC president and CEO Gary Goodman says the properties in the portfolio have well-staggered lease and debt maturity profiles and are well-positioned to benefit from a continuing recovery in the US office market. “Despite consistently strong growth, significant improvement in the quality of the assets and regular increases in distributions, the trading price of [IPC's] units has, until recently, underperformed relative to other Canadian and U.S. REITs,” Goodman says. “Our trading price, however, has appreciated approximately 25% since the beginning of November 2006, which…we attribute to a number of factors.”

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