Royal LePage Franchise Services Fund

Royal LePage Franchise Services Fund

January 04, 2007 17:00 ET

The Royal LePage Franchise Services Fund Announces Completion of Acquisition

TORONTO, ONTARIO--(CCNMatthews - Jan. 4, 2007) - The Royal LePage Franchise Services Fund (TSX:RSF.UN) announced today that it has completed the previously announced acquisition from the Fund Manager of franchise agreements representing 22 real estate brokerage offices and 390 Realtors for approximately $7.2 million. The purchase price will be finalized at the end of 2007 in accordance with the Management Services Agreement ("MSA") between the Royal LePage Franchise Services Fund and the Fund Manager.

Funding Internally

As outlined in the Fund's MSA, 80% of the 2007 acquisition price, and the final 20% balance owing from the 2006 acquisition, were paid on completion of the acquisition. The combined payment of approximately $6.7 million, which includes applicable taxes, was funded internally.

"The Fund's growth through acquisitions was ahead of plan again this year. We acquired solid real estate businesses across Canada, from Vancouver, British Columbia to Grand Falls, Newfoundland," said Philip Soper, President and Chief Executive Officer.

About the Royal LePage Franchise Services Fund

The Fund is a leading provider of services to residential real estate brokers and their Realtors. The Fund generates cash flow from franchise royalties and service fees derived from a national network of real estate brokers and agents in Canada operating under the Royal LePage and Johnston & Daniel brand names. As at September 30, 2006, the Fund Network was comprised of 12,201 Realtors operating from 579 locations under 276 franchise agreements. The Fund Network has an approximate 20% share of the Canadian residential resale real estate market based on transactional dollar volume. Fund is a TSX listed income trust, which pays monthly distributions and trades under the symbol "RSF.UN".

Forward Looking Statements

This news release contains forward-looking information and other forward-looking statements. The words such as "should" "will", "continue", "plan", "believe," "expect," "anticipate," "intend," "estimate" and other expressions which are predictions of or indicate future events and trends and which do not relate to historical matters identify forward-looking statements. Reliance should not be placed on forward-looking statements because they involve known and unknown risks, uncertainties and other factors, which may cause the actual results, performance or achievements of the Fund to differ materially from anticipated future results, performance or achievement expressed or implied by such forward-looking statements. Factors that could cause actual results to differ materially from those set forward in the forward-looking statements include general economic conditions, interest rates, availability of equity and debt financing and other risks detailed in the Fund's annual information form and from time to time in other reports of the Fund filed with securities commissions. The Fund undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

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