Plaza announces intention to proceed with buyout of equity partners' interests in 8 properties
Nov 10, 2014
FREDERICTON, Nov. 10, 2014 /CNW/ - Plaza Retail REIT (PLZ.UN: TSX) ("Plaza") announced today that it intends to purchase the interests of several of its equity partners in eight properties located in New Brunswick and Prince Edward Island. Plaza currently owns interests in each of the properties of between 43% and 85%, and following the purchase it will own between 86% and 100% of each. The net purchase price (after assumption of debt) of $6.1 million will be satisfied by the issuance of 1,319,000 exchangeable limited partnership ("LP") units of a subsidiary LP at a price of $4.60 per unit, which would be exchangeable at any time into units of Plaza. The transaction is accretive to Plaza's funds from operations and cash flow.
The issuance of exchangeable LP units is subject to the approval of the Toronto Stock Exchange and the purchases are subject to the satisfaction or waiver of customary conditions. Closing is anticipated to occur before the end of the year.
Plaza is an open-ended real estate investment trust and is a leading retail property owner and developer, particularly in Eastern Canada. Plaza's current portfolio includes interests in 312 properties totaling approximately 6.7 million square feet across Canada and additional lands held for development. Plaza's properties include a mix of strip plazas, stand-alone small box retail outlets and enclosed shopping centres, anchored by approximately 90% national tenants.
CAUTIONARY STATEMENTS REGARDING FORWARD LOOKING INFORMATION
This press release contains forward-looking statements. Often, but not always, forward-looking statements can be identified by the use of words such as "plans", "expects" or "does not expect", "is expected", "estimates", "intends", "anticipates" or "does not anticipate", or "believes", or variations of such words and phrases or state that certain actions, events or results "may", "could", "would", "might" or "will" be taken, occur or be achieved. Forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of Plaza to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements contained in this press release. Examples of such statements include the completion of the purchases and the issuance of exchangeable LP units in part satisfaction of the purchase price. Such forward-looking statements are based on a number of assumptions that may prove to be incorrect, including, but not limited to, the satisfaction of certain conditions necessary to complete the purchases, including the requirements of the Toronto Stock Exchange. There can be no assurances that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements. These cautionary statements qualify all forward-looking statements attributable to Plaza and persons acting on its behalf. Unless otherwise stated, all forward-looking statements speak only as of the date of this press release and Plaza undertakes no obligation to update such statements except as required by law. The factors identified above are not intended to represent a complete list of the factors that could affect Plaza. Additional information about these assumptions and risks and uncertainties are more fully described in Plaza's regulatory filings that can be obtained on SEDAR at www.sedar.com.
SOURCE Plaza Retail REIT
For further information: on Plaza Retail REIT, visit our website at www.plaza.ca; or contact: Michael Zakuta, President and Chief Executive Officer, at (514) 457-0997 or Kim Sharpe, Director, Business Development, at (506) 451-1826