Axia Real Assets Makes Non-Binding Offer to Acquire Plaza Retail REIT for $1.23 Billion

📅 4 days ago

Toronto-based Axia Real Assets LP has submitted a non-binding offer for Plaza Retail REIT, valuing it at $1.23 billion. This article outlines the details of the offer, the implications for Plaza, and the broader market context.

In a significant move within the Canadian real estate sector, Axia Real Assets LP, a Toronto-based real estate fund, announced last week that it has put forth a non-binding offer to acquire Plaza Retail REIT, which is headquartered in New Brunswick. The proposed acquisition values Plaza Retail REIT at approximately $1.23 billion, inclusive of $670 million in debt. Axia's offer includes a purchase price of $5.28 per unit, reflecting a considerable premium of 20.8% over the 90-day volume-weighted average price of the units and a 19.5% premium on the trading price as of June 8, 2026, the date the offer was submitted.
Axia Real Assets has stated that its bid is not contingent upon financing or due diligence, indicating that they have secured committed financing to cover all costs associated with the acquisition, including a financing commitment from a Canadian Schedule I Bank. In a press release, Axia expressed that the proposed transaction presents a compelling option, offering significant premiums and immediate liquidity for unit holders, which they argue is a more attractive alternative compared to remaining invested in a small-cap, illiquid REIT that has struggled to generate growth in free cash flow and maintain distributions.
The company highlighted that Plaza Retail REIT’s distributions have remained stagnant for eight years, citing a structurally constrained AFFO payout ratio. Additionally, Axia pointed out that the REIT has been trading at a persistent discount to its net asset value (NAV) and has reduced its portfolio from 253 assets in 2022 to 190 currently. As of March 31, 2026, Plaza Retail REIT's portfolio includes stakes in 101 open-air retail centers, three enclosed malls, 68 single-use retail properties, 17 non-consolidated partnerships and trusts, as well as one property currently under development, with a majority of its assets situated east of Ontario.
A significant stakeholder in Plaza Retail REIT is Morguard Corporation, which holds about 15.3% of the issued and outstanding units. Axia reported that Morguard has expressed strong support for the proposed transaction, indicating its readiness to vote in favor at any upcoming unitholders’ meeting to approve the deal.
Axia Real Assets, a relatively new player in the real estate market founded in 2021, claims to have navigated evolving market conditions effectively through strategic sector selection and active asset management, with a capital deployment of $300 million to date. The firm is led by Greg Stevenson, the former CEO of Slate Grocery REIT, along with Julie Tang as VP of Finance and Alessandro Capuzzimati as Director of Investments, both of whom have substantial experience in the sector.
In response to the bid, Plaza Retail REIT confirmed the receipt of Axia's offer, clarifying that it was not solicited or initiated by them. The REIT stated that it is forming a special committee to evaluate the proposal, with the assistance of financial and legal advisors, to determine the best course of action for maximizing value for its unitholders. They emphasized that no decisions have been made regarding the proposal, and no assurances can be given that it will lead to a transaction.
Advisory roles in this process are being filled by Colliers Capital Markets as the lead financial and real estate advisor to Axia, while National Bank of Canada Capital Markets is acting as a co-financial advisor and Stikeman Elliott LLP is serving as legal counsel. For Plaza Retail REIT, TD Securities and Blake Cassels & Graydon LLP are providing financial and legal advisory services, respectively.
If this acquisition goes through, it would represent yet another significant transaction within the Canadian REIT landscape, following recent deals involving InterRent REIT, Minto Apartment REIT, and First Capital REIT.

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