FREDERICTON, Dec. 14, 2017 /CNW/ - Plaza Retail REIT
("Plaza or the "REIT") (TSX: PLZ.UN) today announced that it has
sold a 50% non-managing interest in eight retail properties in
New Brunswick and Nova Scotia to a syndicated group of investors
for total proceeds of $17.3 million,
including cash proceeds of $7.3
million and assumption of debt of $10.0 million. The net proceeds raised from
this partial sale of mature properties will be recycled into new
capital projects.
Plaza has a unique opportunity to leverage its core strengths in
development and re-development to capitalize on the changing retail
landscape in Canada. This includes
converting big box retail properties into multi-unit retail plazas.
The net proceeds of this sale will be applied to the REIT's strong
pipeline of opportunities, and are expected to generate higher
returns for unitholders.
About Plaza
Plaza is an open-ended real estate
investment trust and is a leading retail property owner and
developer, particularly in Eastern Canada. Plaza's portfolio
at September 30, 2017 includes
interests in 295 properties totaling approximately 7.7 million
square feet across Canada and
additional lands held for development. Plaza's properties
include a mix of strip plazas, stand-alone small box retail outlets
and enclosed shopping centres, anchored by approximately 90%
national tenants.
Forward-looking Information
This press release
contains forward-looking statements, which can generally be
identified by terms such as "will", "expects" or other similar
expressions or phrases that do not relate to historical
facts. Forward looking statements in this press release
include those which relate to future application of the proceeds of
the partial sale and the expectation that higher returns for
unitholders will be generated. Forward-looking statements
involve known and unknown risks, uncertainties and other factors
which may cause the actual results, performance or achievements of
Plaza to be materially different from any future results,
performance or achievements expressed or implied by the
forward-looking statements contained in this press release,
including those described in Plaza's Annual Information Form for
the year ended December 31, 2016 and
Management's Discussion and Analysis for the period ended
September 30, 2017 which can be
obtained on SEDAR at www.sedar.com. Forward-looking
statements are based on a number of expectations and assumptions,
including management's perceptions of historical trends, current
conditions and future development and redevelopment
opportunities. Although the forward-looking statements
contained in this press release are based upon information
currently available to management and what management believes are
reasonable expectations and assumptions, there can be no assurances
that forward-looking statements will prove to be accurate.
Therefore, readers should not place undue reliance on
forward-looking statements. All forward-looking statements speak
only as of the date of this press release and Plaza undertakes no
obligation to update such statements, except as required by law.
These cautionary statements qualify all forward-looking statements
contained in this press release.
SOURCE Plaza Retail REIT