GO Residential REIT has gone public in Toronto with an IPO valued at US$410.1 million.

The deal ranks as one of the largest-ever real estate IPOs in Canada, according to The Globe and Mail. Other reports stated that the IPO was heavily oversubscribed.

The units were priced at US$15 each on the Toronto Stock Exchange.

The Toronto Stock Exchange has conditionally approved the listing of the units, which are trading under the symbol GO.U.

The listing’s final approval is subject GO fulfilling all TSX requirements.

The newly formed Ontario-based REIT will own and operate five luxury high-rise multi-family properties comprising 2,015 suites in Manhattan. The REIT aims to expand across major U.S. cities.

CIBC Capital Markets and BMO Capital Markets are joint active bookrunners, with support from a syndicate that includes BofA Securities and several other firms. A cornerstone investor, Cohen & Steers, has agreed to buy US$90 million worth of units in a private placement. An over-allotment option could bring the total value of the IPO to US$471.6 million. Proceeds will be used to acquire the portfolio, repay debt and fund related costs.

GO is headed by Co-Founders Meyer Orbach, the REIT’s chair, and Joshua Gotlib, who serves as its CEO and chief investment officer. Both are New York-based long-time commercial real estate investors.

Orbach also chairs the Orbach Group, a diverse investment and management firm that focuses on affordable housing.

Gotlib formerly served as CEO of Black Spruce, an acquirer and operator of multi-family properties located in the New York City area.

The REIT expects its monthly cash dividends to generate a 4.26% annual return.

Pictured: The Copper (centre), a two-building apartment portfolio on New York City’s waterfront owned by GO Residential REIT.

Photo: GO Residential REIT