CCAA filing by Priszm allows opportunity to further diversify tenant
base across Canada
TORONTO, March 31 /CNW/ - Scott's Real Estate Investment Trust (TSX:
SRQ.UN) ("Scott's REIT" or "REIT") released statements today regarding
Priszm Income Fund's ("Priszm") announcement that it had successfully
received court protection under the Companies' Creditors Arrangement
Act ("CCAA"). Scott's REIT understands that all tenanted Priszm KFC and
Taco Bell store locations remain open.
"The CCAA filing facilitating the sale of Priszm's KFC and Taco Bell
restaurants creates an opportunity for Scott's REIT to further
diversify our tenant base and strengthen our property portfolio across
Canada," said Evelyn Sutherland, Chief Financial Officer at Scott's
At the time of the Scott's REIT IPO in 2005, Priszm's KFC/Taco Bell
restaurants represented 99 per cent of the tenant base of the REIT.
With Scott's REIT's growth, today Priszm represents approximately 50
per cent of its tenant base.
"All stores remain open for business and rent is continuing to be paid,"
confirmed Sutherland. "It's our understanding that the court order was
obtained to facilitate the sale of its restaurants and its large sale
transaction with Soul Restaurants Canada Inc."
Scott's REIT has provided their consent to assign leases for 40 of
Priszm's locations in British Columbia, Ontario and Quebec. The
assignment agreement includes a representation from Soul Restaurants
Canada Inc. ("Soul Restaurants"), which has not yet been delivered.
Soul Restaurants is an entity controlled by a current European
franchisee of Yum! Restaurants International.
About Scott's Real Estate Investment Trust
Scott's REIT (TSX: SRQ.UN) is Canada's premier small-box retail property
owner with 220 properties in seven provinces across Canada. Scott's
REIT's properties are well-located and geographically diverse across
Canada with the majority of all properties containing long-term
quadruple net leases. The REIT has approximately 75.6 per cent interest
in Scott's Real Estate LP. To find out more about Scott's Real Estate
Investment Trust (TSX: SRQ.UN), visit our website at http://www.scottsreit.com.
This document contains certain information that may constitute
forward-looking information within the meaning of securities laws. In
some cases, forward-looking information can be identified by the use of
terms such as "may", "will", "should", "expect", "plan", "anticipate",
"believe", "intend", "estimate", "predict", "potential", "continue" or
other similar expressions concerning matters that are not historical
facts. Forward-looking information may relate to management's future
outlook and anticipated events or results, and may include statements
or information regarding future growth opportunities and potential and
expected cash distributions or cash distribution levels. In particular,
information regarding the REIT's monthly cash distributions and
information relating to the impact of the REIT's recent acquisitions on
annual revenues and interest expense is forward-looking information.
Forward-looking information is based on certain factors and assumptions
regarding, among other things, occupancy rates, property expense and
capital expenditures. While the REIT considers these assumptions to be
reasonable based on information currently available to it, they may
prove to be incorrect. Forward looking-information is subject to
certain factors, including risks and uncertainties, which could cause
actual results to differ materially from what is currently expected.
Such factors include risks relating to the REIT's reliance on Priszm,
the REIT's largest tenant, risks associated with investment in real
property, competition, reliance on key personnel, financing and
refinancing risks, environmental matters, tenant risks, risks related
to current economic conditions and other risk factors more particularly
described in the REIT's Annual Information Form for the year ended
December 31, 2009. You should not place undue importance on
forward-looking information and should not rely upon this information
as of any other date. Other than as required by applicable Canadian
securities law, the REIT does not undertake to update this information
at any particular time. Additional information identifying risks and
uncertainties is contained in Scott's REIT filings with the Canadian
securities regulators, available at www.sedar.com.
SOURCE Scott's Real Estate Investment Trust
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