Partners Real Estate Investment Trust Closes Public Offering

 

VICTORIA, B.C. (March 8, 2011) - Partners Real Estate Investment Trust (“Partners REIT” or the “REIT”) (TSX-V: PAR.UN) announced that it has closed its previously announced offering of $25,000,000 aggregate principal amount of 8.0% extendible convertible unsecured subordinated debentures (the “Debentures”). The net proceeds to the REIT (before deducting expenses of the offering) were $23,625,000.

TD Securities Inc. and CIBC acted as co-lead managers, along with a syndicate of co-managers including, Dundee Securities Ltd., Macquarie Capital Markets Canada Ltd., Scotia Capital Inc., National Bank Financial Inc., Canaccord Genuity Corp., Raymond James Ltd. and Brookfield Financial Corp. (collectively, the “Underwriters”).

The REIT intends to use the net proceeds of the offering to partially fund the acquisition of six additional properties as described in the REIT’s press release dated February 14, 2011, the repayment of an $8,600,000 secured loan bearing interest at 8.75% and for general trust purposes.

The REIT has granted the Underwriters an over-allotment option, exercisable in whole or in part at any time up to 30 days following the closing of the offering, to purchase up to an additional $3,750,000 principal amount of Debentures.

This news release shall not constitute an offer to sell or the solicitation of an offer to buy any securities, nor shall there be any sale of securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of such jurisdiction. The securities offered have not been and will not be registered under the United States Securities Act of 1933, as amended (the “1933 Act”), and may not be offered or sold within the United States or to, or for the account or benefit of, U.S. persons, except in certain transactions exempt from the registration requirements of the 1933 Act.

About Partners REIT

Partners REIT is a growth-oriented real estate investment trust, which currently owns (directly or indirectly) ten retail properties, well-located in Ontario and Quebec, aggregating approximately 1.2 million square feet of leaseable 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 TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

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 the use of proceeds of the offering, 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.

For more information, contact Patrick Miniutti, President and Chief Operating Officer (250) 595-9398.