Capital Markets Expertise
PROREIT Strategic Partnership
Rationale:
In 2014, under an indirect value-add strategy, Lotus Capital formed a strategic relationship with PRO Real Estate Investment Trust that leverages Lotus’s real estate investment expertise and national breadth to augment PRO’s growth strategies. At a 9.1% initial yield and a 10x valuation multiple, the unit price is expected to increase significantly as the market cap grows. Lotus’s partnership with PRO includes a seat on the Board of Trustees for Shenoor Jadavji.
In 2014, under an indirect value-add strategy, Lotus Capital formed a strategic relationship with PRO Real Estate Investment Trust that leverages Lotus’s real estate investment expertise and national breadth to augment PRO’s growth strategies. At a 9.1% initial yield and a 10x valuation multiple, the unit price is expected to increase significantly as the market cap grows. Lotus’s partnership with PRO includes a seat on the Board of Trustees for Shenoor Jadavji.
Realization:
Lotus Capital completed a private placement of equity, a property vend-in (two long-term leased warehouses--PRO’s first acquisition in Western Canada) in exchange for additional units, and entered into a strategic partnership with PRO, all concurrent with a $30M public equity raise. Since that initial transaction, Lotus Capital has completed two additional vend-in transactions to PRO totalling over $20M in asset value.
Lotus Capital completed a private placement of equity, a property vend-in (two long-term leased warehouses--PRO’s first acquisition in Western Canada) in exchange for additional units, and entered into a strategic partnership with PRO, all concurrent with a $30M public equity raise. Since that initial transaction, Lotus Capital has completed two additional vend-in transactions to PRO totalling over $20M in asset value.
Returns:
PRO’s portfolio comprises over 2.1M SF and consists of 40 high quality assets in primary and smaller markets, with credit tenants accounting for over 40% of the income. PRO’s market cap has more than quintupled to over $140M from $25M prior to the strategic relationship, with an annual distribution unit of $0.21 per unit, or approximately 9.1%.
PRO’s portfolio comprises over 2.1M SF and consists of 40 high quality assets in primary and smaller markets, with credit tenants accounting for over 40% of the income. PRO’s market cap has more than quintupled to over $140M from $25M prior to the strategic relationship, with an annual distribution unit of $0.21 per unit, or approximately 9.1%.
