Shareholders Urged to Vote Their BLUE Proxy
TORONTO, May 6, 2013 /CNW/ - Partners Real Estate Investment (Partners
REIT) (TSX: PAR.UN) filed a proxy circular today ahead of its upcoming
annual meeting of unitholders.
Partners REIT unitholders will elect independent trustees for the coming
year on Thursday, June 6, 2013, at 2:30 p.m. (Toronto time)
In an accompanying letter to unitholders Louis Maroun, Partner REIT's
chairman of the board of trustees, highlights the importance of
internalizing management.
"We know that with the right team, we can really maximize value for
everyone invested in Partners REIT", Mr. Maroun says. "We believe the
current manager has too many conflicts of interest to be effective in
managing the REIT." The full text of the letter is appended below.
Partners REIT previously announced the termination of its current
management agreement between LAPP Global Asset Management Corp., and a
wholly-owned subsidiary of IGW Public, effective November 1, 2013.
Partners REIT unitholder are urged to vote their BLUE proxy or VIF ahead
of the deadline June 4, 2013.
If you have any questions or need assistance completing your BLUE proxy
or VIF, please contact Kingsdale Shareholder Services Inc., the proxy
solicitation agent, at 1-888-518-1565 or contactus@kingsdaleshareholder.com.
Full text of Mr. Maroun's letter:
PARTNERS REAL ESTATE INVESTMENT TRUST
May 6, 2013
Dear Unitholders:
It is my great pleasure to invite you to the annual meeting of Partners
Real Estate Investment Trust (the REIT) as described in the attached
notice and proxy circular. As you may already know, now more than ever
is a vital time to protect your investment in the REIT. At the upcoming
annual meeting on June 6, 2013, you will be asked to elect trustees of
the REIT for the ensuing year. The independent trustees and IGW Public
Limited Partnership (IGW Public), the entity that controls the Manager,
have different visions with respect to the management of the REIT. Your
vote is extremely important. Please carefully read the accompanying
proxy circular before voting so you understand how significantly your
support will help in the future success of the REIT.
We ask you to vote for four independent trustees with extensive
knowledge and experience of the REIT and in managing other REITs. Your
independent trustees will break the chains of the management agreement
and establish a new internalized management team over the next six
months fully dedicated to managing the growth of the REIT and focussed
on maximizing unitholder value. Increasingly, the global investment
community looks more favourably on REITs with internalized management
rather than external Managers as an internalized management structure
eliminates potential or existing conflicts of interest and fully aligns
the management team with all unitholders. However, if your independent
trustees are not re-elected then we cannot ensure the planned
performance of the REIT that is required to support long-term,
sustainable and growing monthly cash distributions and enhanced
unitholder value.
As we announced on May 2, 2013, your independent trustees terminated the
management agreement between LAPP Global Asset Management Corp., a
wholly-owned subsidiary of IGW Public, effective the close of business
on November 1, 2013. This decision was made in the best interest of all
unitholders and we believe that the internalization of management will:
-
provide for the establishment of a high quality internalized management
team focused on enhancing unitholder value;
-
result in improved management and governance of the REIT;
-
eliminate existing conflicts of interest between the Manager and the
REIT;
-
deliver required resources through dedicated full-time employees focused
exclusively on the REIT;
-
reduce the annual cost of managing the REIT; and
-
improve the REIT's competitiveness in acquiring properties through the
elimination of acquisition fees paid to the Manager.
The Independent Trustees have been informed that IGW Public plans to
propose its own slate of four nominees with the intention of
maintaining itself as an outside manager. This is likely in reaction to
the Manager's pending loss of fees under the Management Agreement that
is being terminated. Your support is important more than ever to
prevent IGW Public from stopping the proposed internalization and
prioritizing its own best interest rather than in the best interest of
all unitholders of the REIT.
Your independent trustees urge you to vote your BLUE proxy well in
advance of the June 4, 2013 proxy deadline. Your participation at this
meeting is important. We encourage you to exercise your right to vote,
which can easily be done by following the instructions provided in the
proxy circular. Regardless of the number of units you own, please vote
your BLUE proxy to break the chains and express your support.
If you have any questions or need assistance completing your BLUE proxy
or VIF, please contact Kingsdale Shareholder Services Inc., the proxy
solicitation agent, at 1-888-518-1565 or contactus@kingsdaleshareholder.com.
For more information please visit www.partnersreit.com. We encourage you to visit our website before attending the meeting.
We look forward to seeing you on June 6, 2013.
Yours very truly,
Louis J. Maroun FRICS
Chair of the Board of Trustees
Partners Real Estate Investment Trust
SOURCE: Partners REIT
