|By Marketwired .||
|December 15, 2013 08:00 PM EST||
VICTORIA, BRITISH COLUMBIA -- (Marketwired) -- 12/15/13 -- Partners REIT (TSX: PAR.UN) (the "REIT" or "Partners REIT") announced today that the Board of Trustees has entered into an arrangement intended to accelerate the REIT's internalization to no later than February 15, 2014.
Following their appointment, the independent Trustees conducted a full review and assessment of the CCAA proceedings affecting League Asset Corp. and certain related entities ("League") and determined that action was required to ensure the orderly management of the REIT going forward, including strategic, advisory and asset management services. The independent Trustees received, and have consented to, a proposal from McCowan and Associates Ltd. ("McCowan") pursuant to which McCowan will acquire League's rights and duties under the existing management contract, and will then stabilize the REIT's management and assist the Trustees with internalization planning. Under the offer to League, which is subject to approval by the Supreme Court of British Columbia, McCowan will purchase and assume League's interest in the management contract for $1.5 million, arrange for the provision of all necessary management services to the REIT by competent employees, including, as needed, by seconding employees of League to an affiliate of McCowan, and develop, for the approval of the Trustees, a plan to internalize management no later than February 15, 2014. Upon approval of the internalization plan by the Trustees, McCowan will agree to terminate the management agreement on reimbursement by the REIT of the $1.5 million purchase price, waiving any entitlement to notice. This amount is approximately $1.9 million less than the termination fee that would otherwise have been payable by the REIT to League under the management agreement on voluntary internalization in 2014. McCowan advised the independent Trustees that the $1.5 million price was vigorously negotiated by it with the Court-appointed Monitor for League.
McCowan and Associates Ltd. is a private company controlled by Ron McCowan, an entrepreneur who has over 40 years of extensive experience in real estate development, construction, ownership and management. McCowan currently owns and manages properties comprising more than 4 million square feet. McCowan beneficially owns approximately 14.95% of the issued and outstanding units of Partners REIT.
Partners REIT is a growth-oriented real estate investment trust, which currently owns (directly or indirectly) 39 retail properties, well-located in British Columbia, Alberta, Manitoba, Ontario and Quebec, aggregating approximately 2.7 million square feet of leasable space. Partners REIT focuses on expanding and managing a portfolio of retail and mixed-use community and neighbourhood shopping centres located in both primary and secondary markets across Canada.
Partners Real Estate Investment Trust
Chief Executive Officer
McCowan and Associates