Partners Real Estate Investment Trust

Partners Real Estate Investment Trust

September 17, 2014 16:34 ET

Partners Real Estate Investment Trust Provides Holyrood Transaction Update and Property Sale Update

BARRIE, ONTARIO--(Marketwired - Sept. 17, 2014) - Partners Real Estate Investment Trust ("Partners REIT," or, the "REIT") (TSX:PAR.UN) is pleased to provide an update on both the unwinding of its purchase of three retail centres from Holyrood Holdings Ltd. ("Holyrood") and its sale of a small portfolio of Ontario properties. These items were discussed in detail within press releases entitled "Partners REIT Announces Strategic Steps to Improve Financial Position," disseminated on August 14, 2014, and "Partners Real Estate Investment Trust Provides Holyrood Transaction Update and Property Sale Update," disseminated on September 1, 2014.


Previously, Partners REIT announced that it had entered into a Rescission Agreement originally dated June 6, 2014. The transactions contemplated by the Rescission Agreement would effectively unwind the April 2014 transaction in which the REIT acquired three Ontario retail centres (in Hamilton, London and Kemptville) from Holyrood (the "Transaction"). There are a number of conditions that must be satisfied before the transactions contemplated by Rescission Agreement can be completed, including obtaining an Order from the Ontario Superior Court. Although both Partners REIT and Holyrood are very confident that they have the appropriate grounds to apply for this Court Order, there is no assurance that the Transaction will be rescinded until all of the conditions have been satisfied and the appropriate Court Order has been received.

The Rescission Agreement was originally scheduled to automatically terminate on August 31, 2014, but the term was subsequently extended to September 17, 2014 in order to allow for the receipt of the appropriate Court Order and satisfaction of all conditions. Both Partners REIT and Holyrood have agreed to a further amendment that extends the term of the Rescission Agreement to October 1, 2014 thereby allowing all parties more time to finalize all pending matters.

Upon the unwind of the Transaction being completed, the REIT will be required to reissue its financial statements for the interim period ended June 30, 2014. The REIT anticipates that any such reissuance will occur forthwith following the unwind of the Transaction and such refiled statements will be consistent with Note 3 of the previously issued statements for the interim period ended June 30, 2014, which were originally filed on August 14, 2014.


On August 14, 2014, Partners REIT announced that it had entered into a conditional purchase and sale agreement with an unrelated third party (the "Purchaser"). Partners and the Purchaser have subsequently executed a Purchase and Sale Agreement, and are now completing due diligence in respect of this proposed transaction. As of this date the transaction remains conditional, however management expects these conditions to be met by September 24, 2014 with the closing shortly thereafter.

About Partners REIT

Partners REIT is a growth-oriented real estate investment trust, which currently owns (directly or indirectly) 42 retail properties (including the Holyrood properties), located in British Columbia, Alberta, Manitoba, Ontario, and Quebec, aggregating approximately 3.2 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. 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.

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