GO Residential REIT opens below IPO price on Toronto debut

Published 25/07/2025, 17:16
© Reuters.

Investing.com -- GO Residential Real Estate Investment Trust began trading Friday on the Toronto Stock Exchange at $14.50 per share, below its initial public offering price of $15.00 per share.

The newly formed REIT raised $410.1 million in its IPO, with shares trading under the ticker symbol "TSX:GO.U". The trust could raise up to $471.6 million if underwriters exercise their 30-day over-allotment option to purchase an additional 4,101,000 units at the offering price.

The offering was led by CIBC (TSX:CM) Capital Markets and BMO Capital Markets as joint active bookrunners, with BofA Securities serving as passive bookrunner. Other underwriters included RBC Capital Markets, National Bank Financial, Scotiabank (TSX:BNS), Desjardins Capital Markets, Canaccord Genuity Corp., and BTIG, LLC.

GO Residential REIT is an internally managed, open-ended real estate investment trust focused on luxury high-rise multifamily properties in major U.S. metropolitan areas. The REIT’s initial portfolio consists of five luxury high-rise properties with 2,015 suites located in Manhattan, New York.

As part of the offering, funds and investment vehicles managed by Cohen & Steers (NYSE:CNS) Capital Management purchased 6 million units through a private placement at the $15 offering price, generating $90 million in gross proceeds. The cornerstone investor also received an option to acquire up to 900,000 additional units if the over-allotment option is exercised.

Proceeds from the offering will fund the acquisition of the initial portfolio, including debt repayment, retirement of preferred interests, and transaction costs. Any proceeds from the over-allotment option will be used for debt repayment, capital expenditures, future acquisitions, and general business purposes.

The REIT plans to make its first distribution on September 15, 2025, for the period from the offering closing to August 31, 2025, in the amount of $0.05325 per unit. It intends to continue monthly distributions at this rate, reflecting an expected annual yield of 4.26%.

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