Partners Real Estate Investment Trust

Partners Real Estate Investment Trust

March 17, 2011 22:03 ET

Partners REIT Completes Acquisition of Six Retail Properties

VICTORIA, BRITISH COLUMBIA--(Marketwire - March 17, 2011) - Partners Real Estate Investment Trust ("Partners REIT" or the "REIT") (TSX VENTURE:PAR.UN) announced today that it completed the previously announced acquisition (the "Acquisition") of a portfolio of five properties in Manitoba and one in Quebec aggregating approximately 104,000 square feet of gross leaseable area. The properties are fully occupied, primarily by Shoppers Drug Mart. The purchase price was approximately $31.0 million satisfied by the assumption of existing mortgages of approximately $17.2 million, with the balance in cash. The cash portion of the purchase price came from the use of $9.4 million of the net proceeds from the recently completed $28.75 million bought-deal offering of extendible convertible unsecured subordinated debentures (the "Debentures") and the balance from working capital on hand. The properties currently generate Net Operating Income of approximately $2.3 million on an annualized basis and are expected to generate incremental funds from operations of approximately $600,000.

"We are pleased to have completed our first acquisition of 2011, an accretive transaction that we believe will make a solid contribution to our performance going forward," commented Adam Gant, Chief Executive Officer. "Looking ahead, we are focused on continuing to aggressively grow and diversify our portfolio for the benefit of our unitholders."

As a result of the completion of the Acquisition, the initial maturity date of the Debentures has been extended from April 30, 2011 to March 31, 2016 in accordance with the terms of the Debentures.

About Partners REIT

Partners REIT is a growth-oriented real estate investment trust, which currently owns (directly or indirectly) seventeen retail properties located in Ontario, Manitoba and Quebec, aggregating approximately 1.3 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.

Forward-looking Statements

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 the integration of the Acquisition with our property portfolio, our expectations regarding an increase in incremental funds as a result of the Acquisition, our intention to continue to grow and diversify our portfolio, 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.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Contact Information

  • Partners Real Estate Investment Trust
    Patrick Miniutti
    President and Chief Operating Officer
    (250) 595-9328