Partners Real Estate Investment Trust

Partners Real Estate Investment Trust

May 18, 2011 15:50 ET

Partners REIT Renews Operating Credit Line with Improved Terms

VICTORIA, BRITISH COLUMBIA--(Marketwire - May 18, 2011) - Partners Real Estate Investment Trust (Partners REIT) (TSX VENTURE:PAR.UN) announced today that it has renewed its Operating Credit Line with TD Bank through May 15, 2013 for an amount of $5.8 million, with upward expansion, replacing the prior facility. The new facility bears interest at a rate equal to the Bank's prime rate plus 2.25% per annum or the Bank's Acceptance stamping fee plus 3.25% per annum, down from the previous rates of 3.50% and 4.50%, respectively. The facility directly interfaces with the REIT's bank account for efficient cash management purposes.

The renewed facility was utilized, in part, to complete the acquisition of Centuria Urban Village, a food and drug store anchored high-rise mixed use retail and residential property located in Kelowna, British Columbia. The purchase price of approximately $8.9 million was satisfied with cash from the proceeds of the REIT's recently completed Convertible Unsecured Subordinated Debenture Offering and the REIT's new line of credit. The properties on an annualized basis currently generate Net Operating Income of approximately $650,000 and will generate approximately $550,000 in incremental Funds From Operations. The transaction closed on May 16, 2011.

"We are pleased to extend our credit facility with TD Bank on favourable and flexible terms and to add our first British Columbia property, extending our geographic presence and further strengthening our property portfolio," 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) eighteen 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) 595-9328