FREDERICTON, NB
and TORONTO, ON, May 17, 2013 /CNW/ - Plazacorp Retail Properties
Ltd. (TSXV: PLZ) ("Plazacorp") and KEYreit (TSX: KRE.UN) are
pleased to announce that, following Plazacorp's acquisition of
13,288,370 units of KEYreit ("Units") pursuant to its offer to
acquire all of the issued and outstanding Units, Earl Brewer, Michael
Zakuta and Richard Hamm have
been appointed as trustees of KEYreit, filling the vacancies
created on the board of trustees following the resignations of
Lewis S. Allen, David Peltz and George
Schott. The resignations of Mr. Allen, Mr. Peltz and
Mr. Schott and the appointments of Mr. Brewer, Mr. Zakuta and Mr.
Hamm are effective immediately. Donald M. Biback and John G. Jakolev will remain as trustees until
Plazacorp has acquired 100% of the Units.
Mr. Brewer is the Chairman and a Director of
Plazacorp. Prior to assuming this role he was President and CEO of
Plazacorp from its inception in 1999.
Mr. Zakuta is the President, Chief Executive
Officer and a Director of Plazacorp. Mr. Zakuta is a co-founder of
the Plaza Group and has been involved in every aspect of shopping
centre development, acquisitions and management in Quebec and Atlantic
Canada since 1986.
Mr. Hamm is a Director of Plazacorp and its
former President and Chief Executive Officer. In 1996 he formed a
partnership with the other Plazacorp principals and has since that
time been involved in real estate development business.
Record Date for Special Meeting
As previously announced, a special meeting of
the unitholders of KEYreit will be convened for the purpose of
approving the subsequent acquisition transaction which will allow
Plazacorp to acquire all of the remaining Units. With more
than 66 2/3% of the KEYreit units having been deposited and taken
up by Plazacorp under its offer, Plazacorp is in a position to
cause the subsequent acquisition transaction to be approved by
KEYreit's unitholders at such meeting. The record date for
determining the holders of Units entitled to vote at the
special meeting is May 22,
2013. The date of the special meeting will be
June 26, 2013.
Change of Control Offer for KEYreit
Debentures
As a result of the change of control with
respect to KEYreit caused by the acquisition by Plazacorp of
13,288,370 Units, KEYreit will make a repurchase offer, as soon as
practicable, for the 7.75% convertible unsecured subordinated
debentures due December 31, 2014, the
8.00% convertible unsecured debentures due December 31, 2016 and the 7.00% convertible
unsecured debentures due December 31,
2017 (collectively, the "Debentures"), at a price equal to
101% of their respective principal amounts plus accrued and unpaid
interested. Should a holder of debentures elect not to accept
the repurchase offer, the Debentures will become obligations of
Plazacorp in accordance with the terms of their respective
indentures.
Termination of External Management
Agreements
In accordance with the previously disclosed
termination agreement entered into between Plazacorp and JBM
Properties Inc. ("JBM"), Plazacorp has caused KEYreit to terminate
the management agreements pursuant to which JBM acted as the
external manager of KEYreit. Plazacorp issued 824,742
Plazacorp common shares and paid $4
million in cash to JBM in satisfaction of its obligation
under the termination agreement.
ABOUT PLAZACORP
Plazacorp is a mutual fund corporation and is
one of the leading retail property owners and developers in
Eastern Canada. Plazacorp's
current portfolio includes interests in 119 properties totaling 5.2
million square feet and additional lands held for
development. Plazacorp's properties include a mix of strip
plazas, stand-alone small box retail outlets and enclosed shopping
centres, anchored by approximately 90% national tenants including
Shoppers Drug Mart, Dollarama, Staples, Mark's Work Warehouse,
Sobeys, and others. Our top ten tenants contribute just over
53% of total rent. Plazacorp is fully internalized, therefore
providing shareholders directly with the synergies that come with
an internalized management structure. Plazacorp has proven
its strong "value-add" capabilities to develop, redevelop and
acquire retail real estate throughout Atlantic Canada, Quebec and Ontario. Plazacorp has a strong track
record of generating growth in distributions, having increased its
distributions at least once every year in the last 10 years.
As a result of its capabilities, its performance and its ability to
increase dividends, Plazacorp's share price has also increased
significantly since inception.
More information about Plazacorp can be found on
our website at www.plaza.ca or at www.sedar.com.
ABOUT KEYreit
KEYreit (TSX: KRE.UN) is Canada's premier small-box retail property
owner with 227 properties in nine provinces across Canada. KEYreit's properties are well located
and geographically diverse across Canada with the majority of all properties
containing long-term quadruple net leases.
To find out more about KEYreit (TSX: KRE.UN),
visit our website at www.keyreit.com.
CAUTIONARY STATEMENTS REGARDING FORWARD
LOOKING INFORMATION
This news release contains forward looking
statements relating to our operations and the environment in which
we operate, which are based on our expectations, estimates,
forecasts and projections. These statements are not future
guarantees of future performance and involve risks and
uncertainties that are difficult to control or predict. Therefore,
actual outcomes and results may differ materially from those
expressed in these forward looking statements. Readers, therefore,
should not place undue reliance on any such forward looking
statements. Further, a forward looking statement speaks only as of
the date on which such statement is made. We undertake no
obligation to publicly update any such statement, to reflect new
information or the occurrence of future events or circumstances,
except for forward-looking information disclosed in prior
disclosures which, in light of intervening events, requires further
explanation to avoid being misleading.
Neither the TSXV nor its Regulation Services
Provider (as that term is defined in policies of the TSXV) accepts
responsibility for the adequacy or accuracy of this release.
SOURCE Plazacorp Retail Properties Ltd.