ELAD Group, the controlling shareholder of ELAD Canada Realty ("ELAD Canada"), closes transaction with Montreal-based real estate firm Rester Management to sell its shares for a total consideration of $342 million CAD

The completed transaction between ELAD Group and Rester Management includes additional potential future payments and earnouts that may reach up to $528 million CAD.

TORONTO, June 2, 2021 /CNW/ - ELAD Group, the controlling shareholder of ELAD Canada, announces today it has closed its transaction with Rester Management to sell its shares for an estimated potential total value of up to $528 million CAD, of which $342 million has been paid on closing and the rest in future potential payments and earnouts.

As part of the transaction, ELAD via Rester introduced several high quality, industry-leading partners into portions of its portfolio, namely Galleria on the Park and the vast Agellan industrial and office portfolio in the U.S. ELAD Canada and Rester will retain the day-to-day management and operations of its development sites and income producing portfolio across Canada and the U.S.

Certain properties, such as the renowned and soon-to-be-completed master-planned community Emerald City in Toronto's North York, as well as ELAD's interest in a portfolio of multifamily residential complexes in the U.S. were excluded from the transaction and allotted to ELAD Group. The future 300,000 sq. ft. retail area to be built as part of the award-winning master-planned community Galleria on the Park in Toronto's West End was also excluded from the transaction and allotted to ELAD Group.

"We are very pleased to enter a new chapter for our business, and look forward to working alongside Rester Management and its partners to continue building on our success. Under this new ownership we will continue to be a leading real estate firm and will be stronger, well-capitalised and better than ever," says Rafael Lazer, CEO of ELAD Canada. "The vote of confidence by Rester and its partners is a testament to the quality and resilience of our development sites and properties across North America, as well as the strength of our expertise in real estate development and asset management. We're grateful for the support and vision by El-Ad Group and Mr. Isaac Tshuva throughout the years which have contributed greatly to ELAD Canada's achievements and track record of success."

Over the last year throughout the pandemic, ELAD Canada has reached several significant milestones across its portfolio, reaching sell-out success at master-planned community Emerald City in North York and successfully launching the exciting 31-storey mixed-use tower Galleria III at the award-winning Galleria on the Park in Toronto's West End. ELAD's newest master-planned community in North York, Lansing Square is slated to launch early 2022. Additionally, ELAD has maintained an impressive leasing momentum and stable collection rates across its over 7 million sq.ft. income producing portfolio, despite the pandemic.

Throughout the transaction, the purchaser was represented by KIN Capital Partners and the vendor was represented by Mr.Lazer, CEO ELAD Canada. Law firm BLG represented the purchaser, whereas Stikeman Elliott represented the vendor.

ABOUT ELAD CANADA
ELAD Canada is a multi-billion dollar real estate development, investment and asset management company with best in class mixed-use developments and properties across Canada and the US. ELAD has a proven track record with creating large scale, multi-phase development projects, and along with Agellan Commercial - a fully owned subsidiary - owns 7 million square feet of industrial, office and retail properties. For over 20 years, ELAD has shaped communities through leadership and collaboration and has focused on creating value to maximize returns on its income-producing properties. ELAD is made up of seasoned strategic thinkers who foster long-term relationships through listening to their communities and tenants, collaborating with all stakeholders, and engaging experts who share their passion for creating environments that make our lives better. Best known for its visionary approach at the award-winning, master-planned Emerald City in Toronto, ELAD is currently selling Galleria on the Park – its newest master-planned community. ELAD Canada is also currently working on Lansing Square, a 400,000 sq. ft. office complex on approximately 15 acres slated to be redeveloped as a mixed-use community. We foster relationships, we build communities and we invest in tomorrow; we transform our cities.

SOURCE ELAD Canada

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