TORONTO, Sept. 19, 2018 (GLOBE NEWSWIRE) -- Partners Real Estate Investment Trust (“Partners REIT” or the “REIT”) (TSX:PAR.UN) is pleased to announce that it has agreed to sell 9 of the remaining 10 properties in its Western Canada portfolio (hereinafter “Western Portfolio”). The one property not sold is located in Manitoba and it will continue to be marketed for sale. The purchaser has completed its due diligence, but the sale remains subject to a number of closing conditions. The REIT is expecting closing to occur on October 22, 2018.
The sale of the 10 properties from the Western Portfolio, including the sale of Mariner Square that was completed on September 6, 2018, is expected to result in net cash proceeds to Partners REIT, after payment of related mortgages and transaction expenses, of approximately $50 million.
The REIT’s Board of Trustees has considered various alternatives for the cash proceeds and has concluded that a special cash distribution to all of the unitholders of a portion of the net cash proceeds is most appropriate and in the best interests of all unitholders. The Board will meet after the closing of the sale of the 9 Western Canada properties and decide on the amount of the special cash distribution based upon, among other things, the ongoing cash requirements of the REIT.
The Board currently anticipates that it will reduce the ongoing monthly cash distributions of the REIT following the special distribution. The reduction would be roughly in proportion to the amount of the special distribution and would reflect the smaller size of the REIT.
The REIT is also announcing that it has retained BMO Capital Markets to canvass the market for a possible sale of some or all of the REIT’s properties in the Province of Quebec. Partners REIT owns 11 retail properties in Quebec with a carrying value on the June 30, 2018 interim condensed consolidated financial statements of approximately $190 million. No agreements have been entered into for any properties in Quebec and the Board will decide whether or not to proceed with a sale depending on the interest expressed by third parties.
About Partners REIT
Partners REIT is a real estate investment trust that, following the sale of the 9 Western Canada properties, will own (directly or indirectly) 24 retail properties located in Ontario and Quebec, aggregating approximately 1.9 million square feet of leasable space. Partners REIT manages a portfolio of retail and mixed-use community and neighbourhood shopping centres located in both primary and secondary markets across Canada.
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. Although Partners REIT believes that the assumptions inherent in the forward-looking statements are reasonable, forward-looking statements are not guaranteeing of future performance and, accordingly, readers are cautioned not to place undue reliance on such statements due to the inherent uncertainty therein.
FOR FURTHER INFORMATION PLEASE CONTACT:
Partners REIT Investor Relations
1 (844) 474-9620 ext. 401
Chief Executive Officer
(416) 855-3313 ext. 401