BARRIE, ONTARIO--(Marketwired - May 4, 2014) - The Board of Trustees of Partners Real Estate Investment Trust (TSX:PAR.UN) ("Partners REIT" or the "REIT") today provided an update regarding the matters raised by Orange Capital in a press release issued on May 1, 2014 concerning, among other things, the April 2014 transaction pursuant to which the REIT purchased three Ontario properties from Holyrood Holdings Limited which was partially paid by the REIT issuing securities to Holyrood which represented an aggregate economic interest in the REIT of approximately 18.7% (the "April Transaction").
Following the disclosure from Orange Capital, the Board of Trustees engaged independent legal counsel and initiated an investigation into these matters. The Board has since obtained material new information that persuades the Board that Mr. Ron McCowan, the interim Chief Executive Officer of the REIT, has a close business relationship with Ms. Laura Philp, the owner of Holyrood, sufficient that they should be considered as acting together under applicable regulation.
If the Board of Trustees had been aware of the extent of the dealings between Mr. McCowan and Ms. Philp, they would have required that the April Transaction be submitted to the unitholders for their approval.
In the circumstances, Partners REIT has asked Holyrood to agree to unwind the April Transaction. The REIT intends to return the three properties and Holyrood's approximately 18.7% interest in the REIT would be cancelled. Completion of this reversal is subject to the parties executing definitive documentation, the receipt of third party consents and applicable regulatory approval.
The REIT is also announcing that Mr. McCowan has tendered his resignation as interim Chief Executive Officer. The Board of Trustees has appointed Ms. Jane Domenico, the REIT's current Chief Operating Officer, as acting Chief Executive Officer while the Board continues its previously announced search for a permanent Chief Executive Officer.
About Partners REIT
Partners REIT is a growth-oriented real estate investment trust, which currently owns (directly or indirectly) 42 retail properties, well-located in British Columbia, Alberta, Manitoba, Ontario, and Quebec, aggregating approximately 3.2 million square feet of leasable space. Partners REIT focuses on expanding and managing a portfolio of retail and mixed-use community and neighborhood shopping centres located in both primary and secondary markets across Canada.
Disclaimer
Certain statements included in this press release constitute forward-looking statements. The forward- looking statements are not historical facts but reflect Partners REIT's current expectations regarding future results or events. These forward looking statements are subject to a number of risks and uncertainties that could cause actual results or events to differ materially from current expectations. Although Partners REIT believes that the assumptions inherent in the forward-looking statements are reasonable, forward-looking statements are not guarantees of future performance and, accordingly, readers are cautioned not to place undue reliance on such statements due to the inherent uncertainty therein.