Cominar Real Estate Investment Trust

Cominar Real Estate Investment Trust

March 25, 2010 16:29 ET

Cominar Announces Bought Deal Financing for Gross Proceeds of $100 Million

QUÉBEC CITY, QUÉBEC--(Marketwire - March 25, 2010) -


Cominar Real Estate Investment Trust ("Cominar") (TSX:CUF.UN) announced today that it has entered into an agreement to sell, on a bought deal basis, 5,236,000 Units from treasury to a syndicate of underwriters led by National Bank Financial Inc. and BMO Capital Markets. The Units will be offered at a price of $19.10 per Unit, for gross proceeds to Cominar of $100,007,600. The proceeds from the sale of the Units will be used to pay down debt outstanding under current credit facilities, which debt was used to finance Cominar's ongoing acquisition and development pipeline, and will be used to finance future acquisitions and developments.

Cominar has also granted the underwriters an over-allotment option to purchase 785,400 additional Units, representing 15% of the size of the offering. The over-allotment option may be exercised until 30 days following the closing of the offering.

The offering is expected to close on or about April 7, 2010. The offering is being made under Cominar's base shelf prospectus dated October 29, 2009. The terms of the offering will be described in a prospectus supplement to be filed with Canadian securities regulators.

The Units have not been and will not be registered under the United States Securities Act of 1933 and accordingly will not be offered, sold or delivered, directly or indirectly within the United States, its possessions and other areas subject to its jurisdiction or to, or for the account or for the benefit of a U.S. person, except pursuant to applicable exemptions from the registration requirements.

Portfolio as at March 25, 2010

Cominar is the largest commercial property owner and manager in the Province of Québec. Cominar owns a real estate portfolio of 241 high quality properties, consisting of 45 office, 51 retail and 145 industrial and mixed-use buildings that cover a total area of over 19.4 million square feet in the Greater Québec City, Montreal and Ottawa areas and in the Maritimes. Cominar's objectives are to deliver growing cash distributions to its unitholders and to maximize unitholder value through proactive management and the growth of its portfolio.

Forward-Looking Statements

This press release may contain forward-looking statements with respect to Cominar Real Estate Investment Trust and its operations, strategy, financial performance and condition. These statements generally can be identified by use of forward looking words such as "may", "will", "expect", "estimate", "anticipate", "intends", "believe" or "continue" or the negative thereof or similar variations. The actual results and performance of Cominar Real Estate Investment Trust could differ materially from those expressed or implied by such statements. Such statements are qualified in their entirety by the inherent risks and uncertainties surrounding future expectations. Some important factors that could cause actual results to differ materially from expectations include, among other things, general economic and market factors, competition, changes in government regulation and the factors described under "Risk Factors" in the annual information form of Cominar Real Estate Investment Trust. The cautionary statements qualify all forward-looking statements attributable to Cominar Real Estate Investment Trust and persons acting on its behalf. Unless otherwise stated, all forward-looking statements speak only as of the date of this press release and Cominar Real Estate Investment Trust has no obligation to update such statements.

Contact Information

  • Cominar Real Estate Investment Trust
    Mr. Michel Dallaire, P.Eng.
    President and Chief Executive Officer
    (418) 681-8151