WINNIPEG, Nov. 8, 2011 /CNW/ - Artis Real Estate Investment Trust (TSX:
AX.UN) ("Artis" or the "REIT") provided an update today on the status
of internalization of the asset management and property management
As announced on November 9, 2010, Artis and Marwest Realty Advisors Inc.
agreed to negotiate in good faith the terms and conditions upon which
Artis will internalize its asset management, with a view to completing
such internalization by no later than December 31, 2011. The REIT is
pleased to announce that negotiations have progressed well, and the
asset management functions are expected to be fully internalized,
effective January 1, 2012.
Artis is also pleased to announce that it is in the final stages of
negotiation with respect to the internalization of property
management. Effective January 1, 2012, Artis anticipates that the
omnibus property management agreement between the REIT and Marwest
Management Canada Ltd. will be terminated.
Property management for the 78 properties that are currently directly
managed by Marwest Management Canada Ltd. will be internalized. Three
of the REIT's properties are currently managed by Marwest Management
Canada Ltd. under separate property specific management agreements and
those agreements are expected to remain in effect. 81 of the REIT's
properties are currently managed by third-party providers under a
sub-contract to Marwest Management Canada Ltd. Those third party
service agreements will be assigned by Marwest Management Canada Ltd.
to the REIT and will remain in effect.
"Internalization of the property management and asset management
functions is an important step in the evolution of Artis. We
anticipate this change will generate operational synergies and
ultimately benefit our bottom line," said Armin Martens, CEO of Artis.
"We made a commitment to internalize without cost to the REIT when the
time was right and are pleased to announce that the time for that
change is now."
Upcoming Webcast and Conference Call
Interested parties are invited to participate in a conference call with
management on Wednesday, November 9, 2011 at 2:00 p.m. CST (3:00 p.m.
EST). In order to participate, please dial 1-416-695-6616 or
1-800-952-6845. You will be required to identify yourself and the
organization on whose behalf you are participating.
Alternatively, you may access the simultaneous webcast by following the
link from our website at http://www.artisreit.com/areit_investor.php. Prior to the webcast, you may follow the link to confirm you have the
right software and system requirements.
If you cannot participate on November 9, 2011, a replay of the
conference call will be available by dialing 1-905-694-9451 or
1-800-408-3053 and entering passcode #3604787. The replay will be
available until November 23, 2011. The webcast will be archived 24
hours after the end of the conference call and will be accessible for
Artis is a diversified Canadian real estate investment trust investing
in office, industrial and retail properties. Since 2004, Artis has
executed an aggressive but disciplined growth strategy, building a
portfolio of commercial properties in Canada and the United States,
with a major focus on Western Canada. Artis' commercial property
comprises nearly 16.7 million square feet of leasable area in 162
properties. Leasable area by asset class is approximately 22.1% retail,
35.7% office and 42.2% industrial. The portfolio is located 9.6% in
British Columbia, 30.0% in Alberta, 5.6% in Saskatchewan, 20.7% in
Manitoba, 11.9% in Ontario and 22.7% in the U.S.
This press release contains forward looking statements. For this
purpose, any statements contained herein that are not statements of
historical fact may be deemed to be forward looking statements.
Without limiting the foregoing, the words "expects", "anticipates",
"intends", "estimates", "projects", and similar expressions are
intended to identify forward looking statements. Artis is subject to
significant risks and uncertainties which may cause the actual results,
performance or achievements of the REIT to be materially different from
any future results, performance or achievements expressed or implied in
these forward looking statements. Artis cannot assure investors that
actual results will be consistent with any forward looking statements
and Artis assumes no obligation to update or revise such forward
looking statements to reflect actual events or new circumstances. All
forward looking statements contained in this press release are
qualified by this cautionary statement.
The Toronto Stock Exchange has not reviewed and does not accept
responsibility for the adequacy or accuracy of this release.
SOURCE Artis Real Estate Investment Trust
For further information:
Mr. Armin Martens, President and Chief Executive Officer, Mr. Jim Green, Chief Financial Officer or Ms. Kirsty Stevens, Chief Administrative Officer of the REIT at (204) 947 1250.