Brookfield Business Partners (BBU.UN-T) announced Monday morning it plans to purchase all outstanding shares of Genworth MI Canada, the country’s largest private sector residential mortgage insurer, in a deal which values the firm at about $3.8 billion.
Brookfield already owns a controlling 57 per cent share of Genworth, which recently rebranded and is now operating as Sagen MI Canada (MIC-T). Brookfield and a group of affiliates and institutional partners will pay $43.50 per share for the outstanding Genworth/Sagen units.
Buying the remaining units will cost about $1.6 billion, of which Brookfield will fund about $606 million and its affiliates and other investors the remainder.
Brookfield’s initial Genworth investment
“The transaction, together with our company’s recent rebranding as Sagen MI Canada, represents an exciting new chapter for the company,” said Stuart Levings, president and CEO of Genworth/Sagen, in the announcement. “We look forward under Brookfield’s ownership to continuing to work with lenders, regulators and mortgage professionals to help people responsibly achieve and maintain the dream of home ownership.”
The deal comes as Genworth’s stock price, like many others focused on the real estate sector, remained depressed amid the COVID-19 pandemic and related economic uncertainty. The stock closed at $35.58 on Friday on the TSX after trading as high as $60 in January.
“We are pleased to have reached this agreement, which will provide existing shareholders of the company with price certainty and a meaningful premium in an uncertain market environment,” said David Nowak, managing partner, Brookfield Business Partners, in the release.
Brookfield bought the 57 per cent controlling interest in August 2019 for about $2.4 billion. At the time, it paid $48.86 per share.
The purchase price represents a premium of approximately 22 per cent to the company’s closing share price Friday on the TSX and a premium of approximately 25 per cent to the 20-day volume weighted average price on that date.
Genworth rebrands to Sagen
Genworth MI Canada Inc. changed its brand from Genworth MI Canada to Sagen MI Canada as of Oct. 13. The company operates Genworth Financial Mortgage Insurance Company Canada, the largest private sector residential mortgage insurer in Canada.
It provides mortgage default insurance to Canadian residential mortgage lenders. As at Sept. 30, Genworth had $7.1 billion in total assets and $3.8 billion in shareholder equity.
Genworth is based in Oakville, just west of Toronto.
The transaction requires a number of approvals, including two thirds of Genworth/Sagen shareholders, as well as the approval by at least 50 per cent of minority shareholders (which excludes Brookfield). It is also subject to a series of court and governmental approvals.
The company expects to mail an information circular for a special meeting in November and to hold the special meeting in late December. The transaction is expected to close in the first half of 2021.
During this period, Genworth/Sagen will continue paying its quarterly dividend of $0.54 per share.
Scotiabank is acting as financial advisor to the special committee. Blake, Cassels & Graydon LLP is acting as legal advisor to the company and Goodmans LLP is acting as legal advisor to the special committee.
Torys LLP is acting as legal advisor to Brookfield. McCarthy Tétrault LLP is acting as legal advisor to Scotiabank.
About Brookfield Business Partners LP
Brookfield Business Partners L.P. is a business services and industrials company focused on owning and operating high-quality businesses that benefit from barriers to entry and/or low production costs.
Brookfield Business Partners is the flagship listed business services and industrials company of Brookfield Asset Management Inc. (BAM.A-T), a global alternative asset manager with approximately US$550 billion of assets under management.
Source:- Real Estate News EXchange
No rest in November for real estate market – Times Colonist
It might not feel like spring, but the Greater Victoria real estate market is sure acting like it, according to numbers released Tuesday by the Victoria Real Estate Board.
The region recorded 795 property sales last month, and while that is 195 fewer than October of this year, it is close to the record for the month of November, which was 892 sales recorded in 1989.
“Once again, we’ve tracked an unexpectedly busy month for the Victoria area real estate market,” said board president Sandi-Jo Ayers.
The market has been busy for a while now, as the region flirted with 1,000 sales each month from July through October, suggesting the usually busy spring market – March through June – was delayed until July this year.
“Obviously, we lost a couple of months in the spring,” said Ayers, noting the COVID-19 pandemic shut down the market in April and parts of May and might be the cause of the pent-up demand that has fuelled recent sales figures.
Ayers also noted the market has benefited from historically low interest rates.
“The pandemic may have pushed people’s plans ahead a little faster,” she said, noting those who had been considering retiring or moving up or down in the market might have decided to take advantage of the low-interest environment.
Last month, 361 single-family homes changed hands, down from the 474 that were sold in October, while 262 condos sold, down from 304 in October.
While sales numbers dropped, prices didn’t.
Last month the benchmark price of a single-family home in the region increased to $813,700 from $752,300 in November last year and $795,200 in October this year. Condo prices also increased to $508,400 last month, from $505,500 last year and $504,500 in October 2019.
“We have low inventory and have for a number of years and that puts pressure on pricing,” said Ayers.
There were 1,813 active listings for sale at the end of November, 24.4 per cent fewer than were available at the same time last year.
Ayers said inventory below 2,000 at this time of year is a significant marker, as the region tends to see numbers that low only by the end of the year.
The result of the drop in inventory has led to a significant increase in the number of homes receiving multiple offers and a significant number of properties selling for more than their asking price.
“We have seen that in the last nine months – properties coming to market and within five days they often get multiple offers,” said Ayers. “That tells us inventory is low and properties in desirable areas and priced well get attention from buyers.”
As for what’s to come for real estate in this region, Ayers said it could be more of the same.
“The fact is, the market has outperformed anyone’s expectations in the midst of this pandemic. There is a chance we will see a slow levelling of activity over the winter – which is what we would expect seasonally. However, because of our consistently low inventory, pressure on pricing and multiple-offer situations will likely continue as we remain in a demand-heavy environment,” she said.
Vancouver real estate: Owners begin filing info for B.C.'s new 'hidden ownership' registry – Vancouver Sun
Article content continued
“We’re all going to require transparency reports and fairly elaborate, written documentation between adult child and mom and dad. These are going to require more time and more money.”
Usher supports the registry and was part of the panel that recommended the registry and other changes to B.C. real estate regulations.
“All of this information is going to be available to taxation authorities, police and government agencies, the public to some degree, a portion will be publicly searchable starting next year,” he said. “These are all trade-offs.”
“It’s being done with good intention, with the best of ideas, but unless we, for example, properly fund and coordinate investigative agencies, all we’ve done is created a very expensive, massive database.”
With a file from The Canadian Press
Okanagan-Shuswap real estate boards merging to form 13th largest association in Canada – Kelowna Capital News
Two real estate boards in the Okanagan-Shuswap region will soon become one and together represent 1,600 Realtors from Revelstoke to the U.S. border.
Currently known as the Okanagan Mainline Real Estate Board (OMREB), and the South Okanagan Real Estate Board (SOREB), come Jan. 1 they will be known as the Association of Interior Realtors.
Following the amalgamation in the new year, the Association of Interior Realtors will become the 13th largest Realtor association in Canada.
The new assocation will represent Realtors from Revelstoke to the U.S. border, east to Rock Creek and west to Eastgate Manning Park. It will also encompass the communities of Chetwynd, Tumbler Ridge and Dawson Creek.
Under OMREB there are 88 real estate offices within the southern interior, from Peachland to Revelstoke.
SOREB encompasses 34 real estate offices in the southern interior and six officers in northern B.C.
According to both organizations, this amalgamation will allow them to combine resources, and work together to, “form a more perfect union” to ultimately serve and promote, “the value Realtors bring to the real estate transaction.”
OMREB’s current President Kim Heizmann will remain as President of the new organization, and SOREB’s President Lyndi Cruickshank will take the position of Vice-President.
According to the board, the new Association of Interior Realtors will provide leadership and support to its members in their pursuit of professional excellence within the interior region of British Columbia.
“The Board of Directors and the dedicated staff team will continue to improve the services available to the organization’s Realtor members and further promote the value of using a Realtor, both provincially and nationally,” the board stated in an email.
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