G2S2 Capital has acquired C$600-million in Ravelin Properties REIT’s secured debt.

The deal is part of G2S2’s ongoing effort to help recapitalize the financially troubled REIT in which the Halifax-based company holds a 20% minority ownership stake.

George Armoyan heads G2S2, which is owned by his family, and chairs the REIT. He led a boardroom battle that resulted in Slate Asset Management surrendering its role as Slate Office REIT’s external asset manager. The REIT was subsequently rebranded as Ravelin.

G2S2 will be responsible for all of Ravelin’s indebtedness and obligations under the REIT’s syndicated credit agreement and bilateral loans, amounting to approximately C$528 million.

The REIT’s total debt obligations exceed its net asset value, which stood at $62.9 million the end of 2024, according to Ravelin’s latest quarterly report.

The transaction includes the purchase of C$233 million and US$43.7 million in debt under the syndicated credit agreement. Additionally, Royal Bank of Canada was expected to complete the sale of C$295 million in debt under the bilateral loans to G2S2 by Monday.

The REIT consented to the sale and assignment, with an independent committee of trustees securing a six-month forbearance from G2S2 to allow time for recapitalization negotiations.

Ravelin is a commercial REIT with a portfolio across North America and Europe. The assets are leased primarily to government and high-credit tenants.

G2S2 is a commercial real estate investor and developer with projects largely geared towards the redevelopment of struggling properties.

“This is a significant step in progressing the REIT’s recapitalization plan,” said Shant Poladian, CEO for Ravelin. 

Poladian heads an internal management team that was hired after the REIT rebranded and parted ways with SAM.

Pictured: Ravelin property in Moncton, N.B.

Photo: Ravelin Properties REIT

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