Recently, Toronto-based property fund Axia Real Assets LP exposed that it has sent a non-binding offer to take control of New Brunswick-based Plaza Retail REIT (TSX: PLZ.UN) in a deal that would value the REIT at $1.23 billion, including $670 million of debt.Axia Real Assets is providing a purchase rate of$5.28 per system, which it said represents a 20.8% premium to the 90-day volume-weighted typical rate of the systems and a 19.5% premium on the closing trading cost, both since June 8, 2026– the day Axia submitted its offer.Axia states its quote
is not subject to any funding or due diligence conditions and that they have actually gotten dedicated financing to deliver all payable amounts, consisting of a financing commitment from a Canadian Schedule I Bank.”Axia believes the Proposed Deal stays compelling– delivering a considerable premium and instant liquidity to holders of Units– and is an exceptional alternative to staying bought a small-cap, illiquid REIT that does not have the access to capital required to grow its totally free cash flow and resulting circulations, which have remained flat for 8 years under a structurally constrained AFFO payment ratio,”stated Axia in a news release.”The REIT traded on average ~$212,000 worth of system worth on a daily basis over the last year, making it the most illiquid TSX-listed REIT with a market cap higher than $500 million, “added Axia.Axia likewise revealed that it’s been pursuing Plaza Retail REIT for over 2 years now, making their very first deal on May 17, 2024, and has continued to improve its provide from $4.70 per unit. According to Axia, after making their deal on June 8, the Board of Directors of Plaza Retail REIT” has refused to meaningfully engage or offer any specific feedback.”In its press release, Axia also highlighted a number of issues with the REIT, noting that it has actually been trading at a perpetual discount to its net possession worth( NAV), has not increased circulations to unitholders since 2018, and has cut its portfolio from 253 possessions in 2022 to 190 now.A Plaza Retail REIT home list dated to March 31, 2026 states that the REIT owns stakes in 101 outdoor retail centres, 3 confined malls, 68 single-use retail residential or commercial properties, 17 non-consolidated collaborations and trusts, and one property under development. A bulk of the portfolio lies east of Ontario.Notably, one of Plaza REIT’s biggest unit holders is Morguard Corporation (TSX: MRC), which owns around 15.3%of provided and impressive units. Axia states Morguard” has actually informed Axia and the REIT that it is strongly encouraging of the Proposed Transaction and is prepared to vote all of its Systems in favour of the Proposed Deal at any meeting of Unitholders to authorize the Proposed Deal. “A little-known entity, Axia states on its site that it was established in 2021 and “has browsed developing market conditions through thoughtful sector selection and hands-on asset management,”adding that it has deployed$300 million in capital.Axia is led by Greg Stevenson, who was formerly CEO of Slate Grocery REIT (TSX: SGR.UN). Their VP of Finance is Julie Tang, formerly with Greybrook Realty Partners, and their Director of Investments is Alessandro Capuzzimati, previously with Starlight Investments.In a press release shared a couple of hours after Axia made their bid public, Plaza Retail REIT validated the bid, stated it was not initiated or obtained by Plaza, which it is forming a special committee to identify the strategy.”The Special Committee, with assistance of its financial and legal advisors, will examine the Proposition in
the context of Plaza’s company strategy and any other alternatives that might be readily available to maximize worth for unitholders, “stated the REIT.”No choice has been made with regard to the Proposal, and there can be no guarantee that the Proposal will lead to any deal.” Colliers Capital Markets is acting as the lead financial and real estate advisor to Axia, while National Bank of Canada Capital Markets is functioning as a co-financial advisor and Stikeman Elliott LLP is acting as their legal consultant. TD Securities and Blake Cassels & Graydon LLP are serving as financial and legal advisor, respectively, for Plaza Retail REIT.If successful, this would be the latest in a series of large REIT offers that have occurred in the previous 12 months, following InterRent REIT, Minto Apartment Or Condo REIT, and First Capital REIT.