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KENNER, LA-Sticking to the plan to close today, Morguard Corp. and Revenue Properties Co. Ltd. have acquired Sizeler Property Investors Inc. for an aggregate $434 million. Effective immediately, the locally based REIT has stopped trading on the NYSE.

"The closure of the transaction represents a considerable milestone for Revenue Properties and Morguard by providing an entry and platform for growth into the United States real estate market," K. Rai Sahi, chairman and CEO of the Toronto-based REITs, says in a press release.

In an update to Wednesday's shareholders' vote, Sizeler has reported that the stockholders, representing 13.86 million shares of the 21.46 million of outstanding common stock, cast ballots in favor the lock, stock and barrel sale to the Toronto-based REITs. A total of 925,008 opposed the merger. The pro-merger tally represents 93.6% of the votes cast and about 64.6% of the total issued and outstanding stock.

As agreed in the Aug. 18 merger plan, Sizeler shareholders will get $15.10 for each share of common stock and cash dividends of about 14 cents per share to bump the total per share take to $15.24. Shareholders of Series B preferred stock will get $26.79 per share. The company's release says about 69% of the Series B stockholders have opted to swap their stock for cash.

RBC Capital Markets/Royal Bank of Canada provided $250 million of acquisition financing for the deal, which had the aggregate bumped by $110 million since it was first announced. The REITs' US inroad is 30 multifamily and retail properties in Louisiana, Florida and Alabama.

Instant Insights /

Canadian REITs, Sizeler Close $434M Sale

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