BARRIE, ONTARIO--(Marketwired - May 12, 2015) - Partners Real Estate Investment Trust (TSX:PAR.UN) today announced that its Board of Trustees has resolved to terminate its ongoing review of strategic alternatives for the REIT, and to focus on growth and stability within its existing core business. The REIT will now devote itself to improving its Net Operating Income via a revitalization of its existing portfolio, as well as an improvement of the REIT's balance sheet and financial position.
On May 6, 2014, Partners announced that its Board had struck a Special Committee to review strategic alternatives to maximize value for all unitholders. That process was effectively put on hold until October 2014 until the REIT reversed the Holyrood transaction pursuant to which it had acquired 3 shopping malls in Ontario from Holyrood Holdings. Following the rescission of the Holyrood transaction the Special Committee instructed its financial advisors to re-engage with various parties that had expressed an interest in some form of transaction with the REIT. After considering the alternatives available, that process led to confidential negotiations with a Canadian real estate investment trust. Partners REIT and this third party undertook due diligence and the negotiation of a confidential non-binding letter of intent that contemplated the merger of the two REITs on terms that the Partners REIT Board of Trustees believed could be in the best interests of the REIT. However, any such transaction would require the approval of a majority of the unitholders of Partners REIT, and so the Special Committee canvassed certain of the REIT's major unitholders for a reaction to the transaction that was under consideration. The feedback received by the Special Committee was that those unitholders considered the economic terms of the transaction to undervalue Partners REIT and that they would not support a sale or merger of the REIT at this time. Given that a major strategic transaction of this nature is not possible without the approval of a majority of unitholders, the party in discussion with the REIT elected to discontinue the process and the Special Committee recommended to the Board that the REIT's focus be on continuing to improve the operations of the REIT.
The Board of Trustees of Partners REIT has accepted the recommendation of the Special Committee, and has terminated the process of reviewing strategic alternatives.
About Partners REIT
Partners REIT is a growth-oriented real estate investment trust, which currently owns (directly or indirectly) 36 retail properties, located in British Columbia, Alberta, Manitoba, Ontario, and Quebec, aggregating approximately 2.5 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.
Disclaimer
Certain statements included in this press release constitute forward-looking statements, including, but not limited to, those identified by the expressions "expect," "will" and similar expressions to the extent they relate to Partners REIT. 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, including access to capital, regulatory approvals, intended acquisitions and general economic and industry conditions. 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.