VICTORIA, BRITISH COLUMBIA--(Marketwired - Dec. 29, 2013) - Partners REIT (TSX:PAR.UN) (the "REIT" or "Partners REIT") is pleased to announce the closing of the proposed acquisition by McCowan and Associates Ltd. ("McCowan") of the rights and duties of League Asset Corp. and certain related entities ("League") under the REIT's existing management agreement (the "Transaction"). The Transaction was previously announced on December 15, 2013.
The Transaction has been approved by the Supreme Court of British Columbia and McCowan has arranged for the provision of all necessary management services to the REIT by competent employees. These arrangements include the secondment of certain League employees to a McCowan affiliate.
The Transaction's closing serves as a pivotal step in the REIT's progress towards management internalization. McCowan intends to develop an internalization plan for the REIT, and then submit this plan for approval by the REIT's Board of Trustees. The REIT continues to anticipate completing the internalization process by no later than February 15, 2014.
"We're very pleased to have this transaction successfully closed," stated Patrick Miniutti, Partners REIT's Chief Executive Officer. "McCowan has already begun to demonstrate the multiple benefits their experience will deliver to our business. With this transaction complete, we can now fully devote ourselves to the internalization of our management. The advantages of internalization are clear, and I am confident that this next stage in Partners REIT's development will result in the creation of shareholder value over the long-term."
McCowan is a private company controlled by Ron McCowan, an entrepreneur who possesses more than 40 years of extensive experience in real estate development, construction, ownership, and management. McCowan currently owns and manages properties comprising more than four million square feet. McCowan also beneficially owns approximately 14.95% of Partners REIT's issued and outstanding units.
About Partners Real Estate Investment Trust
Partners REIT is a growth-oriented real estate investment trust that currently owns (directly or indirectly) 39 well-located retail properties in British Columbia, Alberta, Manitoba, Ontario, and Quebec. In aggregate, these properties comprise approximately 2.7 million square feet of leasable space. Partners REIT is focused 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.