Plazacorp enters into new management agreements for its portfolio

Nov 20, 2008

    FREDERICTON, Nov. 20 /CNW/ - Plazacorp Retail Properties Ltd. (PLZ:TSX
Venture) announced today that its independent directors have approved a new
five-year Management Agreement between Plazacorp and Plaza Group Management
Limited ("PGML"). Under this new agreement, PGML will provide property
management and corporate management services to Plazacorp. PGML is a company
indirectly owned and controlled by Earl Brewer, Chairman of Plazacorp, and
Michael Zakuta, President & CEO of Plazacorp. Plazacorp will also enter into a
second Management Agreement with Les Immeubles Plaza Z-Corp ("Plaza Z"), a
company controlled by Michael Zakuta. The purpose of the second management
agreement is to provide a direct relationship between Plaza Z-Corp and
Plazacorp on properties that were previously managed under subcontract
arrangements with Plaza Atlantic Limited, principally in Quebec.
    Edouard Babineau, Chair of Plazacorp's Corporate Governance Committee,
said, "We are pleased that the Corporate Governance Committee's independent
review and negotiations have resulted in an arrangement which will provide
cost savings to Plazacorp and clearly demonstrates the commitment of Earl
Brewer and Michael Zakuta to Plazacorp's business."
    The principal improvements of these new management agreement arrangements
over the existing management contract with Plaza Atlantic Limited include:- A reduction in property management fees from 4% to 3% of gross
      operating receipts;
    - The establishment of a Corporate Management Services fee of 3/4% of
      total rental revenues as the senior executives of Plazacorp (including
      Earl Brewer and Michael Zakuta) are paid by the management companies
      and not by Plazacorp;
    - The transfer of certain expenses from Plazacorp to PGML;
    - Fees under the new Management Agreements will be subject to an annual
    - The introduction of an Alignment of Interest clause which provides
      Plazacorp with the right to purchase the assets of PGML based on its
      book value in certain cases, including if Earl Brewer or Michael Zakuta
      reduce their direct or beneficial ownership interest in Plazacorp below
      their current shareholdings or should they no longer own the management
    - The elimination of an automatic five-year renewal clause; and
    - The contracts may be cancelled by Plazacorp for any reason during the
      final two years of the term upon giving six months' notice in writing
      to the manager.All other services provided and fees charged under the two Management
Agreements remain consistent with Plazacorp's existing Management Agreement
with Plaza Atlantic Limited which expires on March 29, 2009.

    A copy of the Management Agreements will be filed on

    Plazacorp Retail Properties Ltd. is an owner of shopping malls and strip
plazas throughout Atlantic Canada, Quebec and Ontario. Plazacorp, as at
November 20, 2008 owns interests in 92 properties comprising 4.3 million
square feet of retail real estate.

    The TSX Venture Exchange has not reviewed and does not accept
    responsibility for the adequacy or accuracy of this release.
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For further information:

For further information: on Plazacorp, visit our website at; Or contact: Earl Brewer, Chairman or Kim Sharpe, Director of
Business Development, (506) 451-1826