TORONTO — Elad Group, the controlling shareholder of Elad Canada, recently announced it has signed a letter of intent with Toronto-based Plaza Partners and U.S.-based Argent Ventures to sell its shares for an estimated total value of $608 million.
The deal was executed July 5. The value excludes a certain financial asset that is not being acquired as part of the deal.
Once the first phase of the transaction is complete, the agreement provides the buyers with the majority of the day-to-day management. Elad Canada is expected to maintain its current operations, senior management and key personnel.
Recent and current Elad projects include Emerald City in Toronto, Toronto’s master-planned Galleria on the Park and Montreal’s Harmonia Condos at Cite Nature. Elad Canada is also currently working on Toronto’s Lansing Square, a 400,000-square-foot office complex on approximately 15 acres slated to be redeveloped as a mixed-use community.
As phase one of the transaction, 37 per cent of Elad Canada’s shares and 100 per cent of U.S. properties, San Michelle and Colonnade at Sawgrass, mostly owned by Elad Group, will be sold to the investors for a total of approximately $225 million. A binding agreement is expected to be signed by the parties within 30 days.
The agreement grants the option for the investors to acquire the remaining 63 per cent of Elad Canada’s shares no later than 30 months after the signing of the agreement and provides Elad Group with the option to force the acquisition of the remaining 63 per cent in several tranches starting from 18 months following the signing of the agreement.
“We are very pleased with this opportunity as Elad Canada continues to solidify its operations, including investment in income-producing properties and developing master-planned communities in Canada. The transaction process is progressing well, and we look forward to working with the experienced groups at Plaza Partners and Argent Ventures,” said Rafael Lazer, CEO of Elad Canada, in a statement.
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