Melcor Real Estate Investment Trust and Melcor Developments Ltd. Announce Voting Support Agreements for Proposed Acquisition
Edmonton, Alberta, March 05, 2025 – Melcor Real Estate Investment Trust (“Melcor REIT” or the “REIT”) and Melcor Developments Ltd. (“Melcor” or the “Company”) are pleased to announce that they have entered into voting support agreements with two significant unitholders of Melcor REIT. These unitholders, Telsec Property Corporation, Richard Van Grieken, Bonnie Van Grieken, and Kris Van Grieken (collectively, the “Telsec Group”), and FC Private Equity Realty Management Corp. and its affiliates (collectively, the “FC Group”), have agreed to vote their Melcor REIT units in favor of the proposed acquisition of Melcor REIT by Melcor.
The Telsec Group and the FC Group’s Commitment
The Telsec Group and the FC Group collectively hold approximately 34% of the outstanding units of Melcor REIT. Their decision to support the acquisition is a significant vote of confidence in Melcor’s proposed transaction and highlights the strategic benefits of the combination of Melcor REIT and Melcor.
The Proposed Acquisition
Under the terms of the arrangement agreement, Melcor will acquire all of the issued and outstanding units of Melcor REIT for $15.00 per unit in cash. The acquisition is expected to close in the second quarter of 2025 and is subject to certain customary closing conditions, including regulatory approvals and the approval of Melcor REIT unitholders.
Impact on Melcor REIT Unitholders
The acquisition of Melcor REIT by Melcor represents an opportunity for Melcor REIT unitholders to realize a premium to the current market price of their units. The consideration of $15.00 per unit represents a 15% premium to the 20-day volume weighted average price of the units on the Toronto Stock Exchange as of February 28, 2025. Melcor has also committed to maintaining the operational independence of Melcor REIT and its assets following the acquisition.
Impact on the World
The acquisition of Melcor REIT by Melcor is expected to create a leading real estate investment trust in Western Canada. The combined entity will have a diversified portfolio of commercial, industrial, and residential properties, as well as development projects. This increased scale and diversification is expected to provide stability and growth opportunities for the combined entity in a changing real estate market.
Conclusion
The voting support agreements with the Telsec Group and the FC Group are a significant step forward in the proposed acquisition of Melcor REIT by Melcor. The commitment of these major unitholders underscores the strategic benefits of the transaction and provides confidence in the future of the combined entity. The acquisition is expected to provide a premium to Melcor REIT unitholders and create a leading real estate investment trust in Western Canada.
- Melcor REIT and Melcor enter into voting support agreements with significant unitholders
- Telsec Group and FC Group hold approximately 34% of Melcor REIT units
- Melcor to acquire all of Melcor REIT units for $15.00 per unit in cash
- Closing expected in Q2 2025, subject to customary closing conditions
- Premium to Melcor REIT unitholders, maintenance of operational independence
- Creation of leading real estate investment trust in Western Canada
