Primaris Retail REIT
TSX : PMZ.UN

Primaris Retail REIT

July 18, 2005 15:57 ET

Primaris Retail REIT Announces $75 Million Public Offering of Trust Units

TORONTO, ONTARIO--(CCNMatthews - July 18, 2005) - Primaris Retail REIT (TSX:PMZ.UN) announced today that it has reached an agreement with a syndicate of underwriters led by RBC Capital Markets, to issue to the public, subject to regulatory approval, 5,050,000 trust units (the "Units") for $14.85 per Unit for gross proceeds of approximately $74,992,500, plus an option, exercisable at any time before Thursday, July 21, to acquire an additional 700,000 Units at the offering price.

The REIT recently announced five acquisitions in Quebec, Manitoba, Alberta, and Ontario for a total of $268 million. The properties are Place du Royaume, in Saguenay, Quebec; Place Fleur de Lys in Quebec City, Quebec; a 50% interest in Grant Park Shopping Centre in Winnipeg, Manitoba; Northland Professional Centre, in Calgary, Alberta; and Tillsonburg Gateway Centre, in Tillsonburg, Ontario. All these acquisitions have closed except for Place Fleur de Lys which is scheduled to close on July 20, 2005. All five acquisitions are consistent with the REIT's strategy and complement the REIT's portfolio.

On July 7, 2005, the REIT also announced a 5.5% increase in its monthly distribution effective August 15, 2005, for unitholders of record on July 29, 2005. The new payment will be 9.5 cents per unit, or $1.14 annualized. This increase effectively coincides with the commencement of the REIT's third year of operations.

The proceeds of this offering will be used to repay existing indebtedness incurred under the REIT's operating facility, for future property acquisitions and for general trust purposes.

The REIT is pleased to announce a conditional agreement of purchase and sale to acquire an income-producing property very similar to its existing shopping centres, at an approximate cost of $45 million, excluding transaction costs and market value of debt adjustments. The property is subject to an existing mortgage in the amount of approximately $23 million, which the REIT intends to assume. The transaction remains subject to several conditions including the approval of the trustees of the REIT and lender consents. The REIT has a July 25, 2005 deadline to waive its conditions.

Primaris Retail REIT will, within the next few days, file with the securities commissions and other similar regulatory authorities in each of the provinces and territories of Canada, a preliminary short form prospectus relating to the issuance of the Units. Closing of the offering is expected to take place on or about August 4, 2005.

The press release shall not constitute an offer to sell, or the solicitation of an offer to buy, any securities in any jurisdiction. The Units being offered have not been and will not be registered under the U.S. Securities Act of 1933 and state securities laws. Accordingly, the Units may not be offered or sold to U.S. person except pursuant to applicable exemptions from registration.

Launched in July 2003, Primaris Retail REIT owns dominant shopping centres in growing mid-size markets and regional malls in the sub-markets of large metropolitan areas. A TSX listed real estate investment trust, it had 35,442,822 units issued and outstanding as of June 30, 2005.

Contact Information

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