Partners Real Estate Investment Trust

Partners Real Estate Investment Trust

October 22, 2015 08:00 ET

Partners REIT Raises $20.6 Million Through a Fully Subscribed Rights Offering and Announces Partial Redemption of Its Series 1 Convertible Debentures

BARRIE, ONTARIO--(Marketwired - Oct. 22, 2015) - Partners Real Estate Investment Trust (the "REIT," or "Partners") (TSX:PAR.UN) is pleased to announce the successful conclusion of its Right Offering, originally announced on August 20, 2015. Additionally, the REIT is announcing that it has issued the required notice for the redemption of a portion of its Series 1, 8.0% convertible debentures.

The Rights Offering was substantially over-subscribed and raised proceeds of approximately $20.6 million. Each Canadian unitholder was entitled to subscribe for one new unit for every four rights held upon payment of the subscription price of $3.10 per unit. The REIT will issue 6,649,364 units or 100% of the units available under the Rights Offering.

The REIT will apply the proceeds of the Rights Offering to redeem 75% of its $28,750,000 currently outstanding Series 1, 8.0% convertible unsecured subordinated debentures due March 31, 2016 (the "Debentures") and has issued a notice of such redemption to the holders of the Debentures. The Debentures will be redeemed on November 23, 2015, on a pro rata basis and in accordance with their terms. The total redemption amount payable for each $1,000 principal amount of Debentures will equal a redemption price of $1,000 plus accrued and unpaid interest of $11.62 up to but excluding the redemption date.

The REIT plans to complete normal course financing activity to provide the necessary proceeds to repay the Debentures that will remain outstanding.

"We are pleased with and appreciate the support that unitholders of all sizes have shown us," commented Jane Domenico, CEO of the REIT. "As we have stated in the past, our most certain route towards creating unitholder value in the near future is simply to focus on the properties we currently own, placing the best possible tenants within those properties, and providing those tenants with the best possible service. This Rights Offering and partial redemption increases our financial flexibility, which in turn will support our operational objectives in multiple ways."

About Partners REIT

Partners REIT is a growth-oriented real estate investment trust focused on the expansion and management of a portfolio of 36 retail and mixed-use community and neighbourhood shopping centres. These properties are located in both primary and secondary markets across British Columbia, Alberta, Manitoba, Ontario, and Quebec, and comprise a total of approximately 2.5 million square feet of leasable space.

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