TORONTO — InnVest REIT and Bluesky Hotels and Resorts have entered into a definitive agreement that will see Bluesky acquire the Toronto-based trust for $7.25 per share. The proposed transaction values InnVest at approximately $2.1 billion, including the assumption of InnVest’s net debt.
“This transaction is a winning outcome for all stakeholders,” says Drew Coles, president and CEO of InnVest. “The dedicated work of InnVest to improve its portfolio quality and strengthen its balance sheet has culminated in the crystallization of value that this transaction represents. Bluesky is aligned with InnVest’s strategic objectives for the portfolio and I look forward to continuing to lead InnVest on the path of asset quality driven growth.”
The deal has received the unanimous support of InnVest’s Board of Trustees and will be voted on by unitholders at a meeting scheduled for June 28.
Li Chen, the president and CEO of Bluesky, says the investment “will establish a global platform from which Bluesky will continue to pursue growth opportunities in North America.”
The company has indicated it intends to keep InnVest’s Toronto headquarters, workforce and senior leadership team following closing of the deal.
Bluesky has already put down a $100-million deposit for the deal, which is expected to close in the third quarter of 2016. The transaction is still subject to various conditions and approvals.