TORONTO, May 2, 2013 /CNW/ - May 2, 2013 - The independent trustees of Partners Real Estate Investment Trust (the "REIT" or the "Trust") (TSX: PAR.UN; PAR.DB; PAR.DB.A; PAR.DB.B) announce that they have
provided notice to LAPP Global Asset Management Corp., the external
manager of the REIT (the "Manager") that they have decided to internalize management of the REIT,
effective at the close of business on November 1, 2013.
The independent trustees believe the internalization of management will
remove any conflicts of interest between the Manager and the Trust and
significantly improve corporate governance of the Trust.
It has always been the intention of the trustees to have the management
performed on a full time basis by individuals employed directly by the
REIT when the size of the Trust permitted this to be done on a more
economic basis than is the case under the management agreement with the
Manager provided the independent trustees also concluded that
internalizing management was otherwise in the best interests of
unitholders. The management agreement provides for the termination of
the Manager under such circumstances, provided that the Manager is
given six months' notice and a stipulated termination payment. The
independent trustees believe that it is in the best interests of the
unitholders to internalize management.
In taking this decision, the independent trustees considered the amounts
expected to be paid to the Manager to carry out its duties under the
agreement, including the management and acquisition fees payable to it,
and concluded, after seeking independent advice that it would be less
expensive for the REIT to employ individuals directly rather than have
the REIT managed by the Manager.
The independent trustees have asked John van Haastrecht, a current
trustee and a member of the REIT's investment committee, to oversee and
lead the transition from external to internal management. Mr. van
Haastrecht has been a trustee of the REIT since its inception, has been
chairman of the REIT's investment committee, and is familiar with all
of the REIT's properties. He is an experienced real estate executive,
having operated and developed commercial retail shopping centres
through Vanreal Ltd., a company founded by him. In addition, Mr. van
Haastrecht also served as a trustee and the President and Chief
Executive Officer of Morguard Real Estate Investment Trust, a publicly
traded real estate investment trust.
During the six month transition period, Mr. van Haastrecht will assemble
an internal management team and work with the Manager to ensure all
normal reporting obligations of the Trust are met and that the internal
management group is in a position to manage the Trust when the six
month transition period ends on November 1, 2013.
The independent trustees have engaged Scotia Capital Inc. to act as
their financial advisor.
Additional information about this decision will be provided to
unitholders in the proxy circular to be mailed to unitholders in
connection with the upcoming annual meeting of unitholders, which is
expected to be held on June 6, 2013 at 2:30 p.m. in Toronto.
About Partners REIT
The REIT is a growth-oriented real estate investment trust, which
currently owns (directly or indirectly) 38 retail properties located in
British Columbia, Alberta, Manitoba, Ontario and Quebec, aggregating
approximately 2.7 million square feet of leasable space. The Trust
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.
Neither the Toronto Stock Exchange nor Market Surveillance (as that term
is defined in TSX Company Manual) accepts responsibility for the
adequacy or accuracy of this release.
SOURCE: Partners REIT
