Global Summit Real Estate Inc.

March 16, 2011 15:11 ET

Global Summit Real Estate Inc. Announces Completion of Acquisitions

VANCOUVER, BRITISH COLUMBIA--(Marketwire - March 16, 2011) -

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Global Summit Real Estate Inc. ("Global Summit") today announced that it has completed the documentation relating to the acquisition by Global Summit of a 50% interest in each of two general partnerships, The Ritz Commercial Partnership and the New Haven Industrial Lands Development Partnership (hereinafter collectively referred to as the "Acquisition"). The Acquisition was completed with effect on February 15, 2011. The Acquisition was brought before the shareholders of Global Summit at its special and annual general meeting held on November 30, 2010 (the "Meeting"). The shareholders overwhelmingly approved the Acquisition.

Global Summit acquired the 50% interest in the Ritz Partnership held by Mondi Properties (Ritz) Inc. ("Mondi Ritz") and the 50% interest in the New Haven Partnership held by Mondi Properties (New Haven) Inc. ("Mondi New Haven"). Global Summit acquired the 50% interest in the Ritz Partnership for $2,400,000 and the purchase price was paid by the issuance by Global Summit to Mondi Ritz of 48,049,972 Non-Voting Common Shares. Global Summit acquired the 50% interest in the New Haven Partnership for $14,500,000 and the purchase price was paid by the issuance by Global Summit to Mondi New Haven of 290,301,914 Non-Voting Common Shares.

The Acquisition was a "Related Party Transaction" as that term is defined in section 1.1 of Multilateral Instrument 61-101 (the "Instrument") as Michael De Cotiis ("De Cotiis") is a "related party" within the meaning of the Instrument. De Cotiis is the President and Chief Executive Officer of Global Summit. In addition, De Cotiis is the owners of all of the shares of 6707157 Canada Inc. a company which owns all of the Non-Voting Common Shares of Global Summit. Mondi Ritz and Mondi New Haven, respectively, are companies that are owned directly or indirectly by De Cotiis and he is the sole director and officer of each. The other partners of the Ritz Partnership and the New Haven Partnership are companies owned directly or indirectly by relatives of De Cotiis. De Cotiis does not exercise any control or direction over these entities.

As a result of the Acquisition being a "Related Party Transaction", the Instrument required Global Summit to obtain minority approval of the Acquisition. Accordingly, the Acquisition was approved at the Meeting by a simple majority of the votes cast by the minority shareholders, being all holders of the voting Common Shares excluding those held by Mr. De Cotiis or those over which he has control or direction.

For more information regarding the Acquisition and the Ritz and New Haven Partnerships, please refer to the information circular delivered to shareholders in connection with the Meeting, which is filed on SEDAR at www.sedar.com.

About Global Summit Real Estate Inc.:

Global Summit is a real estate development company and currently has an indirect interest in real estate development projects located in downtown Toronto, Ontario.

Contact Information

  • Global Summit Real Estate Inc.
    Les Fovenyi
    Chief Financial Officer
    (604) 408-7080
    (604) 602-7703 (FAX)
    info@globalsummit.ca