British Columbia Investment Management Corporation (bcIMC) is buying Canadian Hotel Income Properties Real Estate Investment Trust for $1.2 billion dollars, including debt.
“As one of Canada’s best-run hotel businesses, CHIP REIT will be a strong complement to our diversified portfolio of assets and contribute to our ability to help finance the retirement benefits of more than 400,000 residents of British Columbia,” says Doug Pearce, CEO and CIO of bcIMC.
The offer of $19.10 per unit is a 34% premium to yesterday’s closing price and a 22% premium to the closing price on March 27, 2007, the day before the real estate investment trust announced it established a committee to look at ways to enhance shareholder value.
CHIP REIT owns and manages 32 hotels with about 7,700 guest rooms under the Delta, Radisson, Marriott and Hilton banners.
bcIMC has more than $85 billion in assets under administration and its clients include public sector pension plans, government bodies and public trusts.