Partners Real Estate Investment Trust

Partners Real Estate Investment Trust

September 01, 2011 16:00 ET

Partners REIT Completes Acquisition of Vancouver Island Retail Centre

VICTORIA, BRITISH COLUMBIA--(Marketwire - Sept. 1, 2011) - Partners Real Estate Investment Trust (TSX VENTURE:PAR.UN) ("Partners REIT") announced today that it had completed the acquisition of the Evergreen Shopping Centre, a five building 88,200 square foot open-air shopping centre located in Sooke, British Columbia approximately 37 kilometers west of Victoria. Anchored by a Western Foods grocery store, a newly-constructed Shoppers Drug Mart, a BC Liquor outlet and a Royal Bank branch, the property is currently 96.2% occupied. The property currently generates rental income, net of property operating expenses, of approximately $1.2 million on an annualized basis and management expects it will contribute approximately $400,000 after interest expense in incremental annualized net income.

Sooke is an attractive, high-end residential community and tourist centre within easy commuting distance of Victoria. The town has been growing over the last decade and has a number of new residential developments underway. The Evergreen Shopping Centre is the largest and strongest retail centre in the community providing necessity-based products and services to its residents.

Partners REIT paid approximately $15.8 million for the property, in part funded by the placement of a new $10.5 million five-year mortgage on the property incurring an interest rate of 3.8%. The balance of the purchase price was paid in cash from a recently-funded new secondary loan bearing interest at 7% and the REIT's lines of credit.

"This acquisition is consistent with our stated strategy to strengthen, expand and further diversify our portfolio by acquiring well-positioned community and neighbourhood properties in growth markets with consistent strong cash flows derived from tenants that provide necessity-based products and services," commented Adam Gant, Chief Executive Officer.

About Partners REIT

Partners REIT is a growth-oriented real estate investment trust, which currently owns (directly or indirectly) 20 retail properties located in British Columbia, Ontario, Manitoba and Quebec, aggregating approximately 1.6 million square feet of leaseable 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