Partners Real Estate Investment Trust

Partners Real Estate Investment Trust

October 02, 2014 11:04 ET

Partners REIT Completes Rescission of the Holyrood Transaction and Provides Update on Strategic Review and Property Management & Leasing

BARRIE, ONTARIO--(Marketwired - Oct. 2, 2014) - Partners Real Estate Investment Trust ("Partners" or the "REIT") (TSX:PAR.UN) is pleased to announce that it has received an Order from the Ontario Superior Court and has completed the rescission of the April 2014 transaction in which the REIT acquired three Ontario retail centres (in Hamilton, London and Kemptville) from Holyrood Holdings Limited. The rescission transaction was completed pursuant to the terms of the previously announced Rescission Agreement originally dated June 6, 2014. As a result, the three retail centres have been returned to Holyrood and the securities issued to Holyrood have been returned to the REIT and subsequently cancelled.

Partners plans to reissue its financial statements for the three and six month periods ended June 30, 2014. These statements originally included contributions from the properties acquired from Holyrood. These reissued statements will be consistent with Note 3 of the previously issued statements for the three and six month periods ended June 30, 2014, which were originally filed on August 14, 2014.

Update on Strategic Review

As Partners has advised in the past, National Bank Financial has been retained as independent financial advisor to the REIT's Board of Trustees in order to assist in the completion of a review of strategic alternatives intended to maximize unitholder value. With the Rescission Transaction complete, the Trustees and National Bank Financial intend to devote their full attention to the strategic review process. While no guarantee can be made regarding the outcome of the review, National Bank Financial believes that completion of the Rescission Transaction will increase the REIT's available options for maximizing unitholder value.

Update on Property Management and Leasing

As noted in previous press releases (originally disclosed within a release entitled "Partners REIT Provides Corporate Update," disseminated on July 10, 2014), Partners terminated the previously disclosed Employee Services Agreement. To that end, the REIT is pleased to announce that it has increased the scope of its property management agreement with Epic Realty Partners ("EPIC") to include property management services in Ontario. A national real estate services firm, EPIC provides market guidance, identifies investment opportunities, and manages properties on behalf of its customers. With offices in Toronto, Montreal, Ottawa, Calgary and Vancouver, EPIC manages over 8 million sq. ft. of office, industrial and retail properties on behalf of Canadian and international private/institutional clients. EPIC's assets under management total $1.5 billion.

Partners is also pleased to announce that it has retained Paul Harrs Real Estate Brokerage to handle the leasing from Ontario to British Columbia. Paul Harrs is an accomplished leasing and operations executive with over 25 years of experience.

There have been no changes in Quebec, as these properties continue to be well managed by Sandalwood Management and Crofton Moore.

These changes to Partners' real estate operations structure will allow senior management to focus on the asset management of the REIT's real estate assets, corporate matters, and value enhancing initiatives.

About Partners REIT

Partners REIT is a growth-oriented real estate investment trust, which currently owns (directly or indirectly) 39 retail properties (including the Holyrood properties) and 36 retail properties (excluding the Holyrood properties), located in British Columbia, Alberta, Manitoba, Ontario, and Quebec, aggregating approximately 2.9 million square feet of leasable area (including the Holyrood properties) and 2.5 million square feet of leasable area (excluding the Holyrood properties). 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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