Melcor Developments Ltd.
TSX : MRD

Melcor Developments Ltd.

March 21, 2013 12:13 ET

Melcor Real Estate Investment Trust Files Preliminary Prospectus for Initial Public Offering

EDMONTON, ALBERTA--(Marketwire - March 21, 2013) -

NOT FOR DISTRIBUTION TO U.S. NEWS WIRE SERVICES OR DISSEMINATION IN THE UNITED STATES.

Melcor Developments Ltd. (TSX:MRD) and Melcor Real Estate Investment Trust (the "REIT") announced today that the REIT has filed, and obtained a receipt for, a preliminary prospectus for its initial public offering of trust units with the securities commissions of all provinces and territories in Canada. The proposed offering will be led by RBC Capital Markets and CIBC.

The REIT is an unincorporated, open-ended real estate investment trust established under the laws of the Province of Alberta. The REIT has been formed to own a portfolio of income producing properties. Concurrent with the completion of the initial public offering of trust units and related transactions, the REIT will indirectly acquire, through a limited partnership, interests in a portfolio of 27 income producing properties located in Western Canada, comprised primarily of retail, office and industrial properties (the "Initial Properties") currently owned, or co-owned, and operated by Melcor Developments Ltd. (collectively, with its affiliates, "Melcor"). The Initial Properties, assembled from Melcor's portfolio of investment properties, are located in the Edmonton, Alberta region; the Calgary, Alberta region; Lethbridge, Alberta; Regina, Saskatchewan; and Kelowna, British Columbia; with approximately 1.57 million owned square feet of gross leasable area.

"We are very pleased to launch the Melcor REIT as an opportunity for investors to participate in the growing Western Canadian commercial real estate market. This market has demonstrated strong and stable income returns," said Ralph B. Young, CEO of the REIT's promoter, Melcor Developments Ltd. and a Trustee of the REIT.

"The creation of the Melcor REIT seems a fitting mark to celebrate our 90th year of business and will contribute to the continued growth and success of both companies," added Andrew J. Melton, Executive Vice Chairman of Melcor Developments Ltd. and Chair of the REIT's Board of Trustees.

On closing of the initial public offering of trust units, it is expected that Melcor will directly or indirectly hold a significant interest in the REIT.

The preliminary prospectus has not yet become final for the purpose of a distribution of securities to the public. This press release does not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale or any acceptance of an offer to buy these securities in any province or territory of Canada prior to the time a receipt for the final prospectus or other authorization is obtained from the securities commission or similar authority in such province or territory. Copies of the preliminary prospectus will be available on SEDAR at www.sedar.com.

Completion of the initial public offering of trust units is subject to and conditional upon the receipt of all necessary approvals, including regulatory approvals.

The trust units have not been, nor will they be, registered under the United States Securities Act of 1993, as amended, and may not be offered, sold or delivered, directly or indirectly, in the United States or to, or for the account or benefit of, "U.S. persons" (as defined in Regulation S under the United States Securities Act of 1933, as amended). This press release does not constitute an offer to sell or a solicitation of an offer to buy any of the trust units in the United States or to, or for the account or benefit of, U.S. Persons.

About Melcor Developments Ltd.

Melcor is a diversified real estate development and management company with a rich heritage of integrity and innovation in real estate since 1923.

Through four integrated operating divisions, Melcor manages the full life cycle of real estate development: from acquiring raw land, to community planning, to construction and development, to owning and managing leasable office, retail and residential sites. Melcor develops and manages mixed-use residential communities, business and industrial parks, office buildings, retail commercial centres and golf courses.

Melcor's headquarters are located in Edmonton, Alberta, with regional offices throughout Alberta and British Columbia. Company developments span Western Canada and the US. Melcor has been a public company since 1968 and trades on the Toronto Stock Exchange (TSX:MRD).

Forward-Looking Statements

This press release may contain forward-looking information within the meaning of applicable securities legislation, which reflects Melcor's and the REIT's current expectations regarding future events. Forward-looking information is based on a number of assumptions and is subject to a number of risks and uncertainties, many of which are beyond Melcor's or the REIT's control, that could cause actual results and events to differ materially from those that are disclosed in or implied by such forward-looking information. Such risks and uncertainties include, but are not limited to, failure to complete the initial public offering of trust units and related transactions, and the factors discussed under "Risk Factors" in the preliminary prospectus of the REIT dated March 20,2013. Neither Melcor nor the REIT undertake any obligation to update such forward-looking information, whether as a result of new information, future events or otherwise, except as expressly required by applicable law.

For more information, visit the REIT's website at www.melcorREIT.com and the REIT's and Melcor's respective issuer profiles at www.sedar.com.

Contact Information

  • Brian Baker - Business Contact
    President & COO, Melcor Developments Ltd.
    Trustee, Melcor Real Estate Investment Trust
    780-423-6931

    Darin Rayburn - Business Contact
    Executive Vice-President, Melcor Developments Ltd.
    CEO, Melcor Real Estate Investment Trust
    780-423-6931

    Investor Relations
    Jonathan Chia, CA
    CFO, Melcor Developments Ltd.
    CFO, Melcor Real Estate Investment Trust
    780-423-6931
    www.melcorREIT.com