Primaris Retail REIT

Primaris Retail REIT

November 28, 2006 15:47 ET

Primaris Retail Real Estate Investment Trust-Notice of Intention to Purchase Units, Announces Investment

TORONTO, ONTARIO--(CCNMatthews - Nov. 28, 2006) - Primaris Retail Real Estate Investment Trust (TSX:PMZ.UN) announced today that the Toronto Stock Exchange (the "TSX") has accepted its notice of intention to conduct a normal course issuer bid to enable it to purchase up to 3,000,000 of its 51,483,794 trust units ("Units") outstanding, representing approximately 6.08% of Primaris' public float of 49,302,967 Units as of November 24, 2006, pursuant to TSX rules.

Purchases under the bid may commence on November 30, 2006, and will terminate on the earlier of November 29, 2007, the date Primaris completes its purchases pursuant to the notice of intention to make a normal course issuer bid filed with the TSX or the date of notice by Primaris of termination of the bid. Purchases will be made on the open market by Primaris through the facilities of the TSX in accordance with the rules and policies of the TSX. The price that Primaris will pay for any such Units will be the market price of such Units on the TSX at the time of acquisition. Units purchased under the bid will be cancelled.

Primaris believes that the market price of its Units at certain times may be attractive and that the purchase of Units from time to time would be an appropriate use of Primaris' funds in light of potential benefits to remaining unitholders.

On an unrelated matter, Primaris has waived all conditions with respect to its purchase from two private vendors of 50% of Grant Park Shopping Centre in Winnipeg, Manitoba, bringing its ownership in the property to 100%. Primaris previously purchased a 50% interest in the property in June 2005, and has operated the shopping centre since that time. The investment should close in two equal parts on November 30 and December 1, 2006. The acquisition cost $31.7 million including transaction costs, and was financed by the assumption of $16.6 million of debt and the issuance of units at $18.59 per unit. The loan matures in 2015 and bears interest at 5.08%. One of the vendors will receive approximately 441,000 trust units of Primaris Retail REIT while the other vendor will receive approximately 371,000 partnership units exchangeable for trust units of Primaris Retail REIT.

Primaris Retail REIT is a TSX listed real estate investment trust (TSX:PMZ.UN). Primaris Retail REIT owns 20 shopping centres which, following the closing of the Grant Park investment, will comprise approximately 8.1 million square feet located in Canada.

Contact Information

  • Primaris Retail REIT
    R. Michael Latimer
    Chief Executive Officer
    (416) 865-5353
    Primaris Retail REIT
    Louis M. Forbes
    Senior Vice President and Chief Financial Officer
    (416) 865-5360