GO Residential Real Estate Investment Trust has launched a US$410.1 million initial public offering, issuing 27,340,000 units at US$15.00 each (approx. C$558 million at a 1.3609 exchange rate). The Ontario-based REIT is acquiring a five-property luxury high-rise multifamily portfolio in Manhattan, totaling 2,015 suites, through GO Residential Operating LLC (OpCo).

Net proceeds of approximately US$387.5 million, alongside US$90 million from a concurrent private placement with Cohen & Steers Capital Management and US$95.6 million from a credit facility, will fund the acquisition, debt repayment, and transaction costs. If the 4,101,000-unit over-allotment option is fully exercised, gross proceeds could reach US$471.6 million (C$642 million).

Post-closing, Retained Interest Holders will own approximately 39.8 percent of OpCo. The REIT targets an initial annual cash distribution yield of 4.26 percent. Units are expected to begin trading on the Toronto Stock Exchange under the symbol GO.U. 

Legal counsel for the REIT includes Blake, Cassels & Graydon LLP (Canada) and Skadden, Arps, Slate, Meagher & Flom LLP (U.S.). Torys LLP advised the underwriters. The offering was led by CIBC World Markets and BMO Nesbitt Burns, with support from Merrill Lynch Canada, RBC, National Bank, Scotia Capital, Desjardins, Canaccord Genuity, and BTIG.