Inovalis Real Estate Investment Trust to Pursue “Core+” Strategy and Asset


Sets Annual Meeting for July 13, 2021 and Announces $0.307 Per Unit Special Distribution

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Inovalis Real Estate Investment Trust (the “REIT”) (TSX:INO.UN) today announced its intention to pursue a strategy that includes new “core and core+” investments in its current and new European markets and special cash distributions to unitholders attributable to its asset recycling plan, following the completion of its strategic review process. It has also set July 13, 2021 for the annual meeting of unitholders (the “Meeting”) to consider, among other things, the election of new independent trustees nominated as part of the REIT’s board renewal process.

Strategic Review

The strategic review process, first announced on October 28, 2020, was overseen by a special committee of independent members of the Board of Trustees (the “Special Committee“), with assistance from independent financial and legal advisors.

The Special Committee’s mandate was deliberately broad in order to enable it to consider a wide range of strategic alternatives available to the REIT. During its review process, the Special Committee considered and agreed to a renewed two-year extension to the REIT’s management agreement with Inovalis S.A., and considered and evaluated a number of expressions of interest relating to some or all of the assets of the REIT.

The Special Committee ultimately determined that it was in the best interest of the REIT and its unitholders to pursue a strategy as more particularly described below that it had developed in conjunction with management during its review process (the “Strategic Plan“).

Strategic Plan

The REIT intends to pursue the following investment strategy:

Cash Deployment

The REIT is expected to deploy the majority of its cash on hand in furtherance of such strategy. The manager has currently identified 120 million Euros of potential acquisitions in its current markets which fit within such strategy, and that could close in 2021. However the REIT has not yet entered into any agreements in connection with such acquisitions and there is no certainty any such acquisitions will be completed.

Structure

  • By the end of 2022, the manager intends to, either acquire or dispose of current joint ventures in accordance with their respective agreements in an attempt to simplify its corporate structure and governance.

Participatory Distribution and Asset Recycling Plan

The strategic review assisted in identifying the manager’s strong track record of crystallizing value in mature assets in the REIT’s portfolio. Expressions of interest on individual assets of the REIT also assisted in identifying attractive value opportunities yet to be realized.

The REIT intends to continue to sell mature assets where it believes value can be maximized and utilize the new capital to…



Read MoreInovalis Real Estate Investment Trust to Pursue “Core+” Strategy and Asset

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