Corporate Properties Limited

October 27, 2005 16:45 ET

Corporate Properties Limited to Acquire SeaMiles

TORONTO, ONTARIO--(CCNMatthews - Oct. 27, 2005) - The Board of Directors of Corporate Properties Limited (TSX VENTURE:CPR) (the " Company") is pleased to announce that it has approved a binding letter of Intent signed by the Company to acquire SeaMiles, LLC of Fort Lauderdale, Florida ("SeaMiles"). Tom Sheppard, President of the Company said "that this acquisition provides a huge boost to our cruise loyalty business. Over the last several months we have been providing extensive consulting services to SeaMiles. The interaction between our Teams resulted in an enhanced platform and has accelerated the rollout of the SeaMiles program. This combination now enables the Company to set a Cruise Industry Standard for loyalty programs".

SeaMiles has a long term strategic Alliance with Carnival Cruise Lines, Our Vacation Store, and Juniper Bank and currently offers a Co Branded MasterCard with Carnival Cruise Lines. It is in negotiation with several other Cruise Lines and Travel Partners to roll out additional Co Branded cards in 2006. The card offers a points accumulation program and redemption proposition offering a "Best in Class" value proposition driven by "Any Cruise/ Any Time" on Carnival or any Cruise Line.

The SeaMiles program began in December 2004 and is offered to US citizens on board all Carnival Cruise Line ships and to past Carnival Cruise Line customers through various offerings and mailings. Mr. Steven Wise, Chairman of SeaMiles said "we have been very happy with the consumer acceptance of the card, and are very excited about the potential proliferation of the program throughout the Cruise Line Industry". Mr. Wise has extensive interests in Canada and the United States and is the Chairman of the KRG Insurance Group of Toronto, Ontario.

The Company employs several key industry professionals that will manage the program and its future development. Mr. Tom Armstrong of Fort Lauderdale, Florida, formerly of Park West At Sea recently joined Mr. Peter Rooney and Mr. Michael Vietri both of Toronto, Ontario in rounding out a team of travel and marketing specialists that will head the Company's cruise loyalty and redemption business. Mr. Wise added "we recognized that, in order for SeaMiles to build on its early success, we needed the help of these professionals. We have ensured this by selling our business to Corporate Properties".

The Company's SeaPoints program offered exclusively to Canadians is very similar to the SeaMiles program. The two programs will eventually be combined and endeavor to become the best value proposition in travel rewards marketing specifically tailored to cruising. Cruising has become a phenomenally popular form of travel for North Americans and has been a steadily growing segment of the travel business for the past 30 years. More than 8 million North Americans cruised in 2004, while many more have indicated in surveys that they intend to do so in the near future. The industry continues to add more and more capacity to meet the ever increasing demand. The SeaMiles/SeaPoints programs will help past and future potential Cruise passengers earn free cruises and cruise discounts.

The development of the programs by SeaMiles have been very capital intensive. Mr. Stephen Miller, a member of the SeaMiles board said "the enormous potential of this program is tempered only by the resources needed to make it succeed. We have invested a lot of money, time and energy into SeaMiles, and feel that it is time to expose the business to the wider investing public. SeaMiles will benefit from the enhanced skill set offered by the SeaPoints Team". Mr. Miller, Mr. William Weinstein and Mr. Mark Stein were partners in the Ozer Group of Boston, Massachusetts when they invested in SeaMiles. Mr. Miller and Mr. Weinstein are currently partners in Gordon Brothers LLC and have extensive experience in mergers and acquisitions, asset valuation, retail lending, and corporate restructuring in the U.S. the UK and Canada. Mr. Miller further added, "that SeaMiles will receive the benefit of a public company organization in raising additional capital, an effort which we fully intend to support".

The nature of the transaction is a combination of cash and assumption of liabilities and will not require the issuance of any additional securities. The Company will raise further capital in the near future to help fund some of the additional liabilities. The transaction will be forwarded to the TSX Venture Exchange for its review and approval. The Letter of Intent requires that one additional board seat be added and offered to a member of the SeaMiles Board. Mr. Miller has offered to fill that position on the Board and The Board has agreed to add him effective on closing.

The Company has approved the financial statements for the third quarter ended September 30, 2005 and they have been released. The Company has granted a total of 350,000 additional options under its existing stock option plan to members of its executive. Mssrs. Sheppard, Macdonald, Rooney and Armstrong have each been granted options.

The Company has recently received final approval from the Township of Muskoka Lakes on the site plan for its property at 97 Joseph Street in Port Carling. Applications for building permits will be received by the township shortly and site work will begin immediately thereafter. Construction has begun on the first phase of the redevelopment of the Greene Slate Inn in Port Carling as part of the Company's continued belief in the development potential in the Township of Muskoka Lakes, Ontario.

The TSX Venture Exchange has neither approved nor disapproved of this press release.

Contact Information

  • Corporate Properties Limited
    Thomas Sheppard
    (416) 966-6885