VICTORIA, BRITISH COLUMBIA--(Marketwired - Feb. 14, 2014) - Partners Real Estate Investment Trust (TSX:PAR.UN) (the "REIT") is pleased to announce that it has terminated its management agreement with McCowan & Associates Ltd. ("McCowan") and completed the internalization of its management, effective February 15, 2014.
As previously announced on December 15, 2013, McCowan has agreed to waive all notice requirements and terminate the management agreement on payment by the REIT of a termination fee of $1.5 million. This amount is approximately $1.9 million less than the termination fee that would otherwise have been payable by the REIT to its prior manager, LAPP Global Asset Management Corp., upon voluntary internalization in 2014.
Under the internalization plan, Partners' head office, including the REIT's executive, asset management, and financial functions, will relocate to Barrie, Ontario. The REIT also expects to maintain offices in Toronto, Ontario and Victoria, British Columbia. As previously announced on February 11, 2014, Mr. Ron McCowan will serve as the REIT's interim Chief Executive Officer and President, while Mr. Derrick W. West has been appointed to the position of Chief Financial Officer.
Partners is also pleased to announce that Ms. Jane Domenico has been appointed to the position of Chief Operating Officer, and that Mr. Marc Charlebois has been appointed an independent member of the Board of Trustees, effective today.
Ms. Domenico currently serves as Partners' Vice President of Asset Management, and possess more than 20 years of experience in the real estate industry. This experience includes management of more than $13 billion in retail assets, as well as responsibility for more than $1.5 billion in development capital investments, and more than $500 million in operating capital expenditures. Ms. Domenico has significant experience with Canada's largest pension fund developers. She was the joint venture partner with Cadillac Fairview and Oxford. She has worked directly with Ivanhoe Cambridge and Oxford. While at Oxford, Ms. Domenico performed asset management for Primaris REIT. She has worked as a third party advisor alongside some of the nation's largest pension fund real estate investors, notably the Canada Pension Plan Investment Board and Greystone Management. Ms. Domenico holds a Bachelor of Commerce Degree from McMaster University.
Partners is also pleased to announce that Mr. Marc Charlebois has been appointed an independent member of the Board of Trustees, effective today. Mr. Charlebois possesses more than 20 years of experience in the real estate industry. He recently served as the Chief Executive Officer at Rodenbury Investments Limited, a private company investing in commercial real estate, and as the Chief Operating Officer at Calloway Real Estate Investment Trust, one of Canada's leading publicly traded retail real estate investment trusts. Mr. Charlebois is a past serving officer in the Canadian Armed Forces. He holds a Bachelor of Engineering degree from the Royal Military College of Canada and an MBA specializing in finance and marketing from Queens University.
"The Board of Trustees is excited to announce the successful completion of the internalization of Partners' management," stated Mr. Joseph Feldman, the Chairman of the REIT's Board of Trustees. "We would like to express our appreciation to McCowan and Associates Ltd. for their assistance throughout this process, and are pleased that we will continue to benefit from Mr. McCowan's leadership while we conduct a search for a permanent President and Chief Executive Officer. The Board is also pleased to welcome Mr. Charlebois and Ms. Domenico, both of whom possess significant experience within our industry. 2014 has begun on a promising note, and we looks forward to working alongside the internalized management team and staff to ensure that this year marks a transformational period in Partners' history."
About Partners REIT
Partners REIT is a growth-oriented real estate investment trust, which currently owns (directly or indirectly) 39 retail properties, well-located in British Columbia, Alberta, Manitoba, Ontario, and Quebec, aggregating approximately 2.7 million square feet of leasable space. Partners REIT focuses 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.
Certain statements included in this press release constitute forward-looking statements, including, but not limited to, those identified by the expressions "expect," "will" and similar expressions to the extent they relate to Partners REIT. The forward-looking statements are not historical facts but reflect Partners REIT's current expectations regarding future results or events. These forward looking statements are subject to a number of risks and uncertainties that could cause actual results or events to differ materially from current expectations, including access to capital, regulatory approvals, intended acquisitions and general economic and industry conditions. Although Partners REIT believes that the assumptions inherent in the forward-looking statements are reasonable, forward-looking statements are not guarantees of future performance and, accordingly, readers are cautioned not to place undue reliance on such statements due to the inherent uncertainty therein.