Welcome!

News Feed Item

Partners Real Estate Investment Trust Announces Update on Ontario Property Acquisition

BARRIE, ONTARIO -- (Marketwired) -- 04/02/14 -- Partners Real Estate Investment Trust (TSX: PAR.UN) (the "REIT") is pleased to provide an update on its proposed acquisition of retail centres in Ontario that was most recently described in its announcement on February 11, 2014. The REIT and the vendor, Holyrood Holdings Limited (the "Vendor") have agreed to the mutual termination of the previously announced purchase and sale agreement and have concurrently entered into a new purchase and sale agreement (the "Agreement") in respect of three of the four previously announced Ontario properties (collectively, the "Properties"). The Properties comprise Hamilton City Centre in Hamilton, the Crossroads Centre in London and a multi-tenant retail property in Kemptville and total approximately 611,510 square feet of gross leasable area.

The REIT will pay immediate consideration of approximately $90,000,000 for the Properties and an investment by way of loan to the Vendor. This purchase price will be satisfied by (i) the assumption of certain debt secured by the Properties, (ii) the issuance of 1,188,188 units of the REIT ("REIT Units"), issued at an effective price of $5.80 per REIT Unit, and (iii) the issuance of 4,813,517 class B units (the "Class B Units") of a limited partnership to be formed by the REIT for the purposes of completing the acquisition, at an effective price of $5.80 per Class B Unit. The Class B Units will be exchangeable for REIT Units on a one-for-one basis and will be the economic equivalent of REIT Units and carry the right to vote at the REIT level. After giving effect to the issuance of the REIT Units and Class B Units, the Vendor is expected to hold approximately 18.7% of the outstanding REIT Units, calculated on a fully-diluted basis.

Pursuant to the Agreement, the REIT and the Vendor will enter into a development agreement pursuant to which the Vendor, as developer, will be granted the right to perform development and leasing activities in respect of certain vacant space and undeveloped space located on the Properties. The REIT has agreed to pay the Vendor (i) $25,000,000, as a deferred purchase price which is fully contingent on the Vendor entering into qualified leases in respect of certain vacant space located on the Properties (the "Contingent Deferred Payment"), and (ii) earn-out payments contingent on the Vendor entering into qualified leases in respect of certain undeveloped space located on the Properties (the "Earn-Out Payments"). Both the Contingent Deferred Payments and Earn-Out Payments will be calculated by dividing the amount that the qualified lease increases the REIT's net operating income (on a 12 month basis) by a capitalization rate of 6.6%. The REIT has discretion to make payment of any Contingent Deferred Payment or Earn-Out Payment by way of (i) cash, (ii) the offsetting of certain debt of the Vendor, (iii) the issuance of up to 506,634 Class B Units at an effective price of $5.95, (iv) requiring the Vendor to provide a vendor take-back mortgage for 60% of the amount payable, or (v) a combination thereof.

Management expects the acquisition of the Properties to be $0.0142 accretive to the REIT's 2013 AFFO per REIT Unit after giving effect to the issuance of all Class B Units and REIT Units.

The Properties include:


--  Hamilton City Centre, a multi-tenant retail centre located at the heart
    of Hamilton's business district in Hamilton, Ontario. Originally built
    in 1990, Hamilton City Centre comprises approximately 423,900 square
    feet of gross leasable area. The property has been well maintained, and
    its more than 50 tenants include Hart Stores, Thunder Alley
    Entertainment and the City of Hamilton.
--  Crossroads Centre, a multi-building, multi-tenant retail centre located
    just north of Highway 401 in London, Ontario. Originally built in 1990,
    Crossroads Centre comprises approximately 159,800 square feet of gross
    leasable area. The property will be aesthetically enhanced with new
    facades and its tenants include Winners, Living Lighting, and OK Tire.
    The centre's gross leasable area now reflects the removal of a building,
    which will allow for the construction of three or four additional out-
    parcels. The removal of the building and aesthetic enhancements are
    included in the major capital project noted above, which is to be funded
    by the Vendor.
--  A multi-tenant retail property in Kemptville, Ontario, which is
    approximately 55km south of Ottawa and the largest community in North
    Grenville. Built in 1998, the property comprises approximately 26,500
    square feet of gross leasable area, and its tenants include Dollar Tree
    and Giant Tiger.

Mr. Ron McCowan, interim CEO of the REIT stated: "The REIT's portfolio will grow significantly as a result of this transaction, which increases our total gross leasable area by approximately 22% and reinforces our position within the healthy Ontario marketplace. This transaction is a clear achievement of our objective of pursuing accretive acquisitions that enhance and protect unitholder value. We look forward to continue to work with Holyrood Holdings Limited as they pursue mutually beneficial leasing and development activities on the Properties."

The closing of the transaction is expected to occur in April and remains subject to regulatory approval and the fulfillment of certain conditions, including the consent of the applicable lenders to the REIT's assumption of mortgage debt on the Properties.

About Partners REIT

Partners REIT is a growth-oriented real estate investment trust, which currently owns (directly or indirectly) 39 retail properties, well-located in British Columbia, Alberta, Manitoba, Ontario, and Quebec, aggregating approximately 2.7 million square feet of leasable space. Partners REIT focuses on expanding and managing a portfolio of retail and mixed-use community and neighbourhood shopping centres located in both primary and secondary markets across Canada.

Disclaimer

Certain statements included in this press release constitute forward-looking statements, including, but not limited to, those identified by the expressions "expect," "will" and similar expressions to the extent they relate to Partners REIT. The forward- looking statements are not historical facts but reflect Partners REIT's current expectations regarding future results or events. These forward looking statements are subject to a number of risks and uncertainties that could cause actual results or events to differ materially from current expectations, including the timing of the offering, success of the offering, listing of the units, use of proceeds of the Offering, access to capital, regulatory approvals, intended acquisitions and general economic and industry conditions. Although Partners REIT believes that the assumptions inherent in the forward-looking statements are reasonable, forward-looking statements are not guarantees of future performance and, accordingly, readers are cautioned not to place undue reliance on such statements due to the inherent uncertainty therein.

Contacts:
Partners Real Estate Investment Trust
Investor Relations
(604) 428-0429
[email protected]

Renmark Financial Communications Inc.
Barry Mire
(514) 939-3989 or (416) 644-2020
[email protected]

Renmark Financial Communications Inc.
Robert Thaemlitz
(514) 939-3989 or (416) 644-2020
[email protected]
www.renmarkfinancial.com

More Stories By Marketwired .

Copyright © 2009 Marketwired. All rights reserved. All the news releases provided by Marketwired are copyrighted. Any forms of copying other than an individual user's personal reference without express written permission is prohibited. Further distribution of these materials is strictly forbidden, including but not limited to, posting, emailing, faxing, archiving in a public database, redistributing via a computer network or in a printed form.

Latest Stories
Companies can harness IoT and predictive analytics to sustain business continuity; predict and manage site performance during emergencies; minimize expensive reactive maintenance; and forecast equipment and maintenance budgets and expenditures. Providing cost-effective, uninterrupted service is challenging, particularly for organizations with geographically dispersed operations.
SYS-CON Events announced today that Commvault, a global leader in enterprise data protection and information management, has been named “Bronze Sponsor” of SYS-CON's 18th International Cloud Expo, which will take place on June 7–9, 2016, at the Javits Center in New York City, NY, and the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. Commvault is a leading provider of data protection and information management...
How will your company move to the cloud while ensuring a solid security posture? Organizations from small to large are increasingly adopting cloud solutions to deliver essential business services at a much lower cost. According to cyber security experts, the frequency and severity of cyber-attacks are on the rise, causing alarm to businesses and customers across a variety of industries. To defend against exploits like these, a company must adopt a comprehensive security defense strategy that is ...
SYS-CON Events announced today that Tintri Inc., a leading producer of VM-aware storage (VAS) for virtualization and cloud environments, will exhibit at the 18th International CloudExpo®, which will take place on June 7-9, 2016, at the Javits Center in New York City, New York, and the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA.
Customer experience has become a competitive differentiator for companies, and it’s imperative that brands seamlessly connect the customer journey across all platforms. With the continued explosion of IoT, join us for a look at how to build a winning digital foundation in the connected era – today and in the future. In his session at @ThingsExpo, Chris Nguyen, Group Product Marketing Manager at Adobe, will discuss how to successfully leverage mobile, rapidly deploy content, capture real-time d...
SYS-CON Events announced today that BMC Software has been named "Siver Sponsor" of SYS-CON's 18th Cloud Expo, which will take place on June 7-9, 2015 at the Javits Center in New York, New York. BMC is a global leader in innovative software solutions that help businesses transform into digital enterprises for the ultimate competitive advantage. BMC Digital Enterprise Management is a set of innovative IT solutions designed to make digital business fast, seamless, and optimized from mainframe to mo...
SYS-CON Events announced today that EastBanc Technologies will exhibit at SYS-CON's 18th International Cloud Expo®, which will take place on June 7-9, 2016, at the Javits Center in New York City, NY. EastBanc Technologies has been working at the frontier of technology since 1999. Today, the firm provides full-lifecycle software development delivering flexible technology solutions that seamlessly integrate with existing systems – whether on premise or cloud. EastBanc Technologies partners with p...
SYS-CON Events announced today that AppNeta, the leader in performance insight for business-critical web applications, will exhibit and present at SYS-CON's @DevOpsSummit at Cloud Expo New York, which will take place on June 7-9, 2016, at the Javits Center in New York City, NY. AppNeta is the only application performance monitoring (APM) company to provide solutions for all applications – applications you develop internally, business-critical SaaS applications you use and the networks that deli...
SoftLayer operates a global cloud infrastructure platform built for Internet scale. With a global footprint of data centers and network points of presence, SoftLayer provides infrastructure as a service to leading-edge customers ranging from Web startups to global enterprises. SoftLayer's modular architecture, full-featured API, and sophisticated automation provide unparalleled performance and control. Its flexible unified platform seamlessly spans physical and virtual devices linked via a world...
SYS-CON Events announced today that ContentMX, the marketing technology and services company with a singular mission to increase engagement and drive more conversations for enterprise, channel and SMB technology marketers, has been named “Sponsor & Exhibitor Lounge Sponsor” of SYS-CON's 18th Cloud Expo, which will take place on June 7-9, 2016, at the Javits Center in New York City, New York. “CloudExpo is a great opportunity to start a conversation with new prospects, but what happens after the...
The cloud era has reached the stage where it is no longer a question of whether a company should migrate, but when. Enterprises have embraced the outsourcing of where their various applications are stored and who manages them, saving significant investment along the way. Plus, the cloud has become a defining competitive edge. Companies that fail to successfully adapt risk failure. The media, of course, continues to extol the virtues of the cloud, including how easy it is to get there. Migrating...
In the rush to compete in the digital age, a successful digital transformation is essential, but many organizations are setting themselves up for failure. There’s a common misconception that the process is just about technology, but it’s not. It’s about your business. It shouldn’t be treated as an isolated IT project; it should be driven by business needs with the committed involvement of a range of stakeholders.
SYS-CON Events announced today that Isomorphic Software will exhibit at SYS-CON's [email protected] at Cloud Expo New York, which will take place on June 7-9, 2016, at the Javits Center in New York City, NY. Isomorphic Software provides the SmartClient HTML5/AJAX platform, the most advanced technology for building rich, high-productivity enterprise web applications for any device. SmartClient couples the industry’s broadest, deepest UI component set with a java server framework to deliver an end-...
As machines are increasingly connected to the internet, it’s becoming easier to discover the numerous ways Industrial IoT (IIoT) is helping to shape the business world. This is exactly why we have decided to take a closer look at this pervasive movement and to examine the desire to connect more things! Now if you need a refresher on IIoT and how it is changing the world, take a moment and listen to Greg Gorbach with ARC Advisory Group. Gorbach believes, "IIoT will significantly change the worl...
The IoT is changing the way enterprises conduct business. In his session at @ThingsExpo, Eric Hoffman, Vice President at EastBanc Technologies, discuss how businesses can gain an edge over competitors by empowering consumers to take control through IoT. We'll cite examples such as a Washington, D.C.-based sports club that leveraged IoT and the cloud to develop a comprehensive booking system. He'll also highlight how IoT can revitalize and restore outdated business models, making them profitable...