The Lexpert Special Editions profiles selected Lexpert-ranked lawyers whose focus is in Corporate, Infrastructure, Energy and Litigation law and relevant practices. It also includes feature articles on legal aspects of Canadian business issues.
Issue link: https://digital.carswellmedia.com/i/133445
REITs 23 d w te d s- il fit he e. ry X d. wts d ms 5 ot ue n 0 n s, al ty asset holders are looking to package their own REITs for sale on the Toronto Stock Exchange. We are also beginning to see the creation of REITs that tap into European (such as the Dundee International REIT) and Australian property. Can the excitement – and the returns – continue? Stephen Pincus, Chair of Goodmans LLP's REITs and income securities practice, was, along with Koval, one of the prime developers of the Canadian REIT. Bay Street dubbed the pair "the king and queen of REITs" for the numerous REIT IPOs they helped usher onto the market. Looking at the number of REIT IPOs, follow-on issuances and REITs announced so far in 2013, Pincus foresees another banner year. In January and February, the REIT pace seemed to quicken compared to the previous year. There was the Agellan REIT IPO for $134.6 million, funds that will be used to acquire properties in both the US and Canada. Add to that the Milestone Apartments REIT, formed to own and run a portfolio of nearly 17,000 garden-style residential properties in the southern United States. In a first of its kind for Canada, Australian REIT Income Fund is seeking $100 million to invest in Australian properties. American Hotels Income Properties REIT plans to raise an as yet un-set amount of money on the TSX to acquire 32 specialized US hotel properties that will cater almost exclusively to in-transit rail employees. REITs have been so effective at raising capital there's practically a frenzy by owners or managers of large properties and assets not typically considered "real estate" to spin those holdings off into REITs. Loblaw recently announced it will launch a $7-billion REIT IPO (one of the biggest ever in Canada) later this year. South of the border television broadcaster CBS is contemplating turning the 400,000 billboards it owns into a REIT. "I would expect that with the very busy pace that we are experiencing now in the sector," says Pincus, "there seems to be no reason why it shouldn't continue. It is certainly as busy as the sector has ever seen, if not more so, on a number of fronts." What's driving all this activity? "Yield," Jeff Glass, a partner at Blake, Cassels & Graydon LLP (Blakes) in Toronto succinctly sums up. "If you build it they will come." Blakes recently completed a 2013 market analysis that also predicts a very active year for investments that provide exposure to revenue-producing real estate, including REITs and mortgage funds. REITs have unique structures that make them tempting candy for both those who build "WE PROFESSIONALS HAVE LARGELY BROKEN THE BACK OF THE TAX AND REGULATORY ISSUES SURROUNDING CROSS-BORDER REITS." . Latham, L. Joseph Leopold, John W. Lever, David A.N. Levin, Jon Levitt, Brian M. Lewis, Gregory D. .ca Goodmans LLP (416) 597-4211 jlatham@goodmans.ca Stikeman Elliott LLP (514) 397-3111 jleopold@stikeman.com McCarthy Tétrault LLP (416) 601-7655 dlever@mccarthy.ca Fasken Martineau DuMoulin LLP (416) 865-4401 jlevin@fasken.com Osler, Hoskin & Harcourt LLP (514) 904-8102 blevitt@osler.com Bull, Housser & Tupper LLP (604) 641-4923 gdl@bht.com Mr. Latham's practice focuses on domestic and cross-border restructuring and insolvency law. He has been an advisor in many industries and complex matters, including White Birch Paper, Graceway Pharmaceuticals, Circuit City, Chemtura and Eddie Bauer. Mr. Leopold is a corporate partner and co-chair of the M&A group. Specializes in commercial, M&A and corporate finance. Acts for private-equity funds and public and private companies with a focus on cross-border transactions. Mr. Lever leads the firm's Infrastructure and Power Groups. He focuses on project finance, corporate finance and M&A in the energy and infrastructure sectors. He has acted for developers, investors and lenders on a wide range of projects. Mr. Levin, one of Canada's leading business lawyers, is highly rated by Chambers, International Financial Law Review, Euromoney, Global Counsel, Lexpert® and Best Lawyers, and is named as one of Canada's 30 leading dealmakers and 500 leading lawyers. Mr. Levitt is one of the leading corporate governance and M&A advisors in Canada. He counsels Canadian corporations on compliance with corporate governance and other requirements of the Sarbanes-Oxley Act and chairs the board of TD Bank. Mr. Lewis's commercial practice focuses on projects and transactions in the infrastructure, energy and other industry sectors, particularly partnerships, joint ventures, acquisitions and financings. e, es d ROB.indd 23 13-04-23 12:09 PM