City Office REIT Taken Private in $1.1 Billion Elliott-Backed Deal

City Office REIT agreed to be acquired by MCME Carell Holdings, an affiliate of Elliott Investment Management and Morning Calm Management, in an all-cash transaction that values the Canadian office landlord at about $1.1 billion including debt. MCME Carell will pay $7.00 for each outstanding common share it does not already own, a 26 percent premium to City Office’s last closing price. The deal, approved by City Office’s board, is expected to close in the fourth quarter of 2025, subject to customary conditions and the planned sale of the company’s Phoenix portfolio. Upon completion, City Office will become a private company and will suspend dividends on its common stock while continuing payments on preferred shares, the firms said. Vancouver-based City Office owns 54 office properties concentrated in fast-growing Sun Belt markets such as Dallas, Denver, Orlando and Phoenix. Elliott and Morning Calm said the purchase reflects their view that high-quality Sun Belt offices will outperform as the sector recovers from pandemic-driven remote-work shifts and higher borrowing costs.