Partners Real Estate Investment Trust

Partners Real Estate Investment Trust

July 18, 2011 19:53 ET

Partners REIT Expands Presence in Quebec

VICTORIA, BRITISH COLUMBIA--(Marketwire - July 18, 2011) - Partners Real Estate Investment Trust (TSX VENTURE:PAR.UN) ("Partners REIT") announced today that it would be acquiring Place Desormeaux, a 250,000 square foot enclosed shopping centre in Longueuil, Quebec on the south shore of the Greater Montreal Region. The property is well situated in a growing urban market and anchored by high quality necessity-based retailers including a Super C grocery store, Pharmaprix, Zellers, Dollarama, the SAAQ, National Bank and Bank of Montreal. It is currently 98.0% occupied. The centre also offers the opportunity to enhance income through the expansion of existing tenants and the development of three new retail pad sites. The property currently generates Net Operating Income of approximately $2.4 million on an annualized basis and management expects it will generate approximately $600,000 in incremental annualized Funds From Operations.

Partners REIT will pay approximately $32.2 million for the property and will incur approximately $3.6 million in acquisition and capital improvement costs. The aggregate outlay of funds will be covered by the placement of a $23.0 million mortgage bearing interest at 210 basis points over the five-year Government of Canada bond rate with a 58-month term or currently approximately 4.25%. The balance of the purchase price will be funded from the REIT's lines of credits. The closing of the transaction is expected on or before August 8, 2011.

"We have been very active growing our portfolio since we took over management of the REIT last June with the acquisition of 9 retail centres adding a total of approximately 500,000 square feet to the portfolio," commented Adam Gant, Chief Executive Officer. "Looking ahead, we continue to evaluate the potential acquisition of a number of additional high quality retail centres consistent with our strategy to strengthen, expand and further diversify our portfolio."

About Partners REIT

Partners REIT is a growth-oriented real estate investment trust, which currently owns (directly or indirectly) 18 retail properties located in British Columbia, Ontario, Manitoba and Quebec, aggregating approximately 1.3 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) 940-5500