Last week, Toronto-based real estate fund Axia Real Assets LP revealed that it has submitted a non-binding offer to take over 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 offering a purchase price of $5.28 per unit, which it said represents a 20.8% premium to the 90-day volume-weighted average price of the units and a 19.5% premium on the closing trading price, both as of June 8, 2026 — the day Axia submitted its offer.
Axia says its bid is not subject to any financing or due diligence conditions and that they have obtained committed financing to deliver all payable amounts, including a financing commitment from a Canadian Schedule I Bank.
“Axia believes the Proposed Transaction remains compelling — delivering a significant premium and immediate liquidity to holders of Units — and is a superior alternative to remaining invested in a small-cap, illiquid REIT that lacks the access to capital needed to grow its free cash flow and resulting distributions, which have remained flat for eight years under a structurally constrained AFFO payout ratio,” said Axia in a press release.
“The REIT traded on average ~$212,000 worth of unit value on a daily basis over the last year, making it the most illiquid TSX-listed REIT with a market cap greater than $500 million,” added Axia.
Axia also revealed that it’s been pursuing Plaza Retail REIT for over two years now, making their first offer on May 17, 2024, and has continued to improve its offer up from $4.70 per unit. According to Axia, after making their offer on June 8, the Board of Directors of Plaza Retail REIT “has refused to meaningfully engage or provide any specific feedback.”
In its press release, Axia also highlighted several problems with the REIT, noting that it has been trading at a perpetual discount to its net asset value (NAV), has not increased distributions to unitholders since 2018, and has trimmed its portfolio from 253 assets in 2022 to 190 now.
A Plaza Retail REIT property list dated to March 31, 2026 states that the REIT owns stakes in 101 open-air retail centres, three enclosed malls, 68 single-use retail properties, 17 non-consolidated partnerships and trusts, and one property under development. A majority of the portfolio is located east of Ontario.
Notably, one of Plaza REIT’s largest unit holders is Morguard Corporation (TSX: MRC), which owns approximately 15.3% of issued and outstanding units. Axia says Morguard “has notified Axia and the REIT that it is strongly supportive of the Proposed Transaction and is prepared to vote all of its Units in favour of the Proposed Transaction at any meeting of Unitholders to approve the Proposed Transaction.”
A little-known entity, Axia states on its website that it was founded in 2021 and “has navigated evolving 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, formerly with Starlight Investments.
In a press release shared a few hours after Axia made their bid public, Plaza Retail REIT confirmed the bid, said it was not initiated or solicited by Plaza, and that it is forming a special committee to determine the course of action.
“The Special Committee, with assistance of its financial and legal advisors, will evaluate the Proposal in the context of Plaza’s business plan and any other alternatives that may be available to maximize value for unitholders,” said the REIT. “No decision has been made with respect to the Proposal, and there can be no assurance that the Proposal will result in any transaction.”
Colliers Capital Markets is serving as the lead financial and real estate advisor to Axia, while National Bank of Canada Capital Markets is serving as a co-financial advisor and Stikeman Elliott LLP is serving as their legal advisor. 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 deals that have occurred in the past 12 months, following InterRent REIT, Minto Apartment REIT, and First Capital REIT.
