Artis REIT and RFA Capital have completed their previously announced merger deal, the organizations announced Monday.

Under the terms of the agreement, Toronto-based RFA Capital acquired Winnipeg-based Artis for an undisclosed price through a plan of arrangement in a take-private deal. Artis has become a wholly owned subsidiary of RFA which has changed its full name to RFA Financial. But Artis unitholders own most of the stock in the new firm.

The deal marks the end of an era as Artis, founded in 2004, will cease to operate as a REIT, which had been a large player in the Western Canadian industrial real estate scene and an active office and industrial investor across Canada and in the U.S. Artis common units, Series E preferred units and Series I preferred units are expected to be delisted from the Toronto Stock Exchange at Tuesday’s market close. In addition, Artis is applying to cease being a reporting issuer under Canadian securities laws, with approval expected to be a formality.

“Bringing RFA and Artis together marks a significant strategic milestone for our organization and our unitholders,” said Samir Manji, executive chair of the combined company’s board and former president and CEO of Artis. “This combination provides our unitholders with meaningful exposure to Canada’s financial services sector and a rare opportunity to participate in the continued expansion and scaling of a Schedule I bank. We are confident that this new platform will deliver long-term value, and we appreciate the ongoing support of our stakeholders as we begin this next chapter.”

The deal received final court approval, along with customary regulatory approvals and a waiver of customary closing conditions, as well as previous support from Artis and RFA Capital stockholders.

Manji, Ben Rodney, Lis Wigmore, Steven Joyce, Mike Shaikh, Heather-Anne Irwin, Jacqueline Moss and Richard Bradlow were elected the the merged firm’s future board.

With the deal complete, as indicated Manji is now serving as RFA financial’s executive chair. Rodney will serve as president and CEO of RFA Financial. He previously chaired the former REIT’s board and served as president and CEO of RFA Capital.

“With the successful completion of this transaction, we have reached a pivotal milestone for both organizations,” said Rodney. “By combining RFA’s expanding banking and mortgage businesses with Artis’s established real estate platform, we have created a diversified company with multiple pathways for growth, enhanced access to capital, and the potential for stronger long‑term returns.”

Jaclyn Koenig, previously CFO of Artis, has assumed the same role with RFA capital. Melody Lo will be chief operating officer, and Kara Watson serves as executive vice-president and corporate secretary.

Artis owned properties across Canada and the U.S. Most of the former REIT’s assets are located in Western Canada.

Artis unitholders received one common share of RFA Financial for each unit that they hold, representing 68% of the combined company.

The combined entity is slated to be listed on the Toronto Stock Exchange and feature a Schedule I bank, RFA Bank of Canada, alongside RFA’s mortgage-origination platform. Artis’ commercial real estate portfolio will become part of the new platform, with proceeds from future asset sales expected to be redeployed into RFA’s higher-growth financial services businesses.

The merger came after Artis concluded a strategic review process that lasted more than a year and resulted in $1.1 billion in divestments for debt-reduction purposes. Based on previously announced plans, RFA is expected to continue selling the former REIT’s assets as part of a rationalization process and use the “substantial net proceeds” to support growth opportunities in RFA’s financial-services platform.

The organizations previously said the planned capital investments would generate material higher returns at a faster rate than a standalone REIT could produce.

Pictured: Calgary office building.

Photo: Artis REIT