Marketwire
TORONTO, ONTARIO--(Marketwired - Nov. 15, 2013) - The trustees of Partners Real Estate Investment Trust (the "REIT") (TSX:PAR.UN)(TSX:PAR.DB)(TSX:PAR.DB.A)(TSX:PAR.DB.B) note that Orange Capital, LLC ("Orange") announced via press release yesterday that it has submitted an offer to League Assets Corp. ("League") and to the court appointed Monitor under League's Companies' Creditors Arrangement Act (Canada) (the "CCAA") filing which is referred to below, to purchase the block of REIT units held by the REIT's largest unitholder, IGW Public Limited Partnership ("IGW"). IGW is a related party to League. It is the REIT's understanding that IGW holds approximately 14.9% of the units of the REIT (the "IGW Block"). Orange also offered to purchase League's interest in the management agreement (the "Management Agreement") between the REIT and LAPP Global Asset Management Corp. (the "Manager"), the external manager of the REIT. The Manager is also a related party to League.
League, the Manager and IGW have sought protection under the CCAA and has been granted a protective order (the "Order") thereunder. Under the terms of that Order, the court must approve any dealing with the assets of these entities, which includes the Management Agreement and the IGW Block.
The trustees of the REIT wish to clarify that the Management Agreement is not assignable by the Manager to any third party without the consent of the trustees of the REIT. In any event, the trustees remain committed to terminating the Management Agreement as soon as they are able to under the Order so that the management of the REIT is conducted by full time personnel employed directly by the REIT. The trustees believe that there are grounds to terminate the Management Agreement without the payment of any fees or other amounts to the Manager and will be seeking the approval of the court to do so.
About Partners REIT
Partners REIT is a real estate investment trust which currently owns (directly or indirectly) 39 retail properties located in Ontario, Quebec, Manitoba, Alberta and British Columbia 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.
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.