FREDERICTON,
May 16, 2013 /CNW/ - Plazacorp Retail
Properties Ltd. (TSXV: PLZ) ("Plazacorp") is pleased to announce
that it has been successful in its offer to acquire KEYreit
("KEYreit"). A total of 13,288,370 units of KEYreit ("Units") were
validly deposited prior to the expiry time of the offer,
representing approximately 88.5% of KEYreit's issued and
outstanding Units. 9,894,399 Units were tendered to the cash
alternative and 3,393,971 Units were tendered to the share
alternative.
Plazacorp has taken up the tendered Units and
payment will be made on or before May 22,
2013. KEYreit unitholders who tendered to the offer and
elected the cash alternative will receive Cdn.$5.56, representing 66.6% of the total cash
amount elected, plus 0.5692 of a Plazacorp common share for each
Unit tendered. KEYreit unitholders who tendered to the offer and
elected the share alternative will receive 1.7041 of a Plazacorp
common share, representing 100% of the total number of Plazacorp
shares elected, subject in each case to adjustment for fractional
shares. Accordingly, Plazacorp will issue approximately
11,415,391 common shares in respect of the offer.
As the offer has now expired, Plazacorp intends
to effect a subsequent acquisition transaction as soon as
practicable and in any event within the next 60 days in order to
acquire all of the remaining Units. With more than 66 2/3% of the
Units having been deposited and taken up by Plazacorp under its
offer, Plazacorp is in a position to cause a subsequent acquisition
transaction to be approved by KEYreit's unitholders at a special
meeting of unitholders to be convened and held for such purpose. On
the completion of the subsequent acquisition transaction, Plazacorp
intends to de-list the Units from the Toronto Stock Exchange.
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.
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.