Retrocom Mid-Market Real Estate Investment Trust
TSX : RMM.UN

Retrocom Mid-Market Real Estate Investment Trust

January 02, 2007 16:39 ET

Retrocom Mid-Market REIT Announces an Agreement for the Conditional Sale of Seven Properties for Gross Proceeds in Excess of $73 Million

TORONTO, ONTARIO—-(Marketwire – Jan. 2, 2007) -

NOT FOR DISSEMINATION IN THE UNITED STATES OR TO ANY NON-CANADIAN

Retrocom Mid-Market Real Estate Investment Trust (TSX:RMM.UN) (the "REIT") announced today that it has entered into an agreement to sell seven properties to Sunstone Realty Advisors for gross proceeds of $73.3 million, which is conditional on financing, final due diligence and other customary closing conditions. The transaction is expected to close in late February 2007.

The conditional sale includes four non-core properties that had previously been mentioned for sale. The properties to be sold totaling approximately 694,000 square feet are:

1. Cariboo Mall, 100 Mile House, BC;

2. Terrace Shopping Centre, Terrace, BC;

3. Driftwood Mall, Courtenay, BC;

4. Maple Park Mall, Quesnel, BC;

5. Smithers Mall, Smithers, BC;

6. Evergreen Centre, Sooke, BC and

7. Millwoods Mainstreet Shopping Centre, Edmonton, Alberta.

"Mortgages in the amount of approximately $40.2 million will be discharged or assumed by the purchaser, and the remainder of the net proceeds, estimated to be up to $33.1 million (less costs) will be used to continue to invest in the balance of the portfolio, reduce short term debt and potentially the buyback of units through a normal course issuer bid", said David Fiume, Chief Executive Officer.

Retrocom Mid-Market REIT is an Ontario unincorporated open-end real estate investment trust that focuses on owning and acquiring mid-market commercial properties in primary and secondary cities across Canada with the objective of producing a geographically diversified portfolio of properties with stable and growing cash flows.

This press release shall not constitute an offer to sell or the solicitation of an offer to buy Units of the REIT, which may be made only by means of a prospectus, nor shall there be any sale of the Units in any state, province or other jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under securities laws of any such state, province or other jurisdiction. The Units of the REIT have not been, and will not be registered under the U.S. Securities Act of 1933, as amended, and may not be offered, sold or delivered in the United States absent registration or an application for exemption from the registration requirements of U.S. securities laws.

Certain statements contained in this news release may include forward-looking information with respect to Retrocom Mid-Market Real Estate Investment Trust's operations and future financial results. Such statements are based on current expectations, are subject to a number of uncertainties and risks, and actual results may differ materially from those contained in such statements. These uncertainties and risks include, but are not limited to, availability of resources, competitive pressures, changes in market activity and regulatory requirements. Further information can be found in the disclosure documents filed by Retrocom Mid-Market Real Estate Investment Trust with the securities regulatory authorities, available at www.sedar.com.

Contact Information

  • Retrocom Mid-Market REIT
    David Fiume
    Chief Executive Officer
    (416) 741-7999
    (416) 741-7993 (FAX)