Anthem Citizen IPO: Here are 10 latest Key things you need to know

First Real Estate IPO for Prime Residential Property in Canada: Anthem Properties Group Ltd. is launching Canada’s first IPO (Anthem Citizen IPO) focused on a prime residential development, raising capital for its “Citizen” project in Burnaby’s Metrotown.

Anticipated $82 Million in Capital: Anthem’s Oct. 16 announcement revealed that it has received strong interest, expecting commitments to reach the maximum offering of $82 million.

October 29 Closing Date: The IPO is set to close on Oct. 29, following the submission of the final proposal to provincial stock management agencies across Canada.

New Investment Vehicle: The IPO is managed by the Anthem Citizen Real Estate Development Trust (REDT), an unincorporated investment trust with a five-year target investment horizon focused on development-oriented real estate.

Scope of the Project: The Citizen project in Burnaby includes 372 residential units, 200 market rental units, 73 affordable rental units, 176 hotel rooms, and 4,881 square meters of retail space. It is owned by Anthem Developments and joint venture partners.

Unique from Traditional REITs: Unlike typical real estate investment trusts (REITs), which focus on purchasing and operating properties, REDT is development-oriented and primarily residential, making it distinct in structure.

CIBC as Lead Agent: CIBC Capital Markets is the sole agent for the IPO, with experience in similar real estate offerings in U.S. markets such as Florida and New Jersey.

Minimum Investment Requirement: Investors can participate in the Anthem Citizen IPO with a minimum investment of $10,000, providing opportunities for a wide range of investors.

77% Pre-Sale Milestone: The project was already 77% pre-sold by the time of the IPO announcement in September, showing significant demand for the development.

Risk Factors: Anthem’s notice outlined potential risks, including project delays, challenges with profitability, and the possibility that cash from operations may not be sufficient for distributions to unit holders, as required by the Securities Act.