Dundee REIT is a Toronto-Based Publicly-Traded REIT
STAMFORD, CT and TORONTO, June 4 /CNW/ - GE Real Estate, a unit of GE
Commercial Finance, and Dundee REIT (D.UN - TSX) announced today that they
have executed a definitive agreement whereby Dundee REIT's operating
subsidiary will sell its portfolio of real estate assets located principally
in Ontario, Québec and Newfoundland (the "Eastern Portfolio") to GE Real
Estate for approximately $2.4 billion CDN.
As part of this transaction, GE Real Estate has agreed to purchase
$165 million of outstanding units of Dundee REIT, which will give GE Real
Estate an approximate 18% equity interest in Dundee REIT following completion.
Dundee REIT will continue to own $1.5 billion of real estate assets in Western
Dundee REIT will apply the proceeds from these two transactions to offer
to purchase units from its unitholders.
"This transaction is consistent with equity deals we've completed around
the world," said Alec Burger, Senior Vice President, at GE Real Estate. "It
gives us a high-quality portfolio of real estate assets in a number of dynamic
and rapidly growing cities. We have long been a real estate investor in Canada
and this helps us accelerate our presence in this market. We look forward to
working closely with the Dundee team to complete this transaction."
"We believe that this is the ideal time for this transaction. Dundee REIT
has performed extremely well over the last two years and is among the most
successful commercial REITs," said Michael Cooper, Vice Chairman and CEO of
Dundee REIT. "This transaction provides many benefits for Dundee REIT and its
unitholders. This transaction also demonstrates the intrinsic value of the
Dundee portfolio, the Dundee executives and its employees."
Katherine Lee, Managing Director, Canada at GE Real Estate, added,
"Canada is among the top real estate markets in the world and the Dundee REIT
portfolio is made up of a large number of well-positioned assets in strong
growth markets. GE Real Estate has a successful track record of tremendous
growth in Canada and this deal is evidence of our commitment to continued
growth in Canada. We're looking forward to working with Dundee and growing
Completion of the transaction is expected to occur in late August 2007,
subject to receipt of regulatory approvals. Genuity Capital Markets and
McCarthy Tétrault LLP acted as advisors to GE Real Estate on this transaction.
Notes to editors:
About GE Real Estate
GE Real Estate (www.gerealestate.com) is one of the world's premier
commercial real estate companies with more than US$59 billion in assets and a
presence in 28 countries throughout North America, Europe, Asia, and
Australia/New Zealand. Backed by GE's AAA rating, GE Real Estate offers a
comprehensive range of capital and investment solutions including equity
capital for acquisition or development, as well as fixed and floating rate
mortgages for new acquisitions or re-capitalizations of commercial real
estate. With a 28% compound annual growth rate since 1993, GE Real Estate is
one of the world's fastest growing and most profitable real estate
enterprises. This extraordinary record of success grows out of a reputation
for collaboration and partnership; a depth of knowledge and experience and a
history of building relationships, finding opportunities and opening doors for
more than 5,000 owners, builders, borrowers and brokers worldwide.
GE Commercial Finance (www.gecommercialfinance.com) offers businesses
around the globe an extensive array of financial products and services. With
more than US$246 billion in assets and expertise in the middle-market, GE
Commercial Finance provides loans, operating leases, financing programs and
innovative structured capital to help customers grow. Headquartered in
Norwalk, Connecticut, GE Commercial Finance is a wholly owned subsidiary of
the General Electric Company (NYSE: GE), a diversified services, technology and
manufacturing company with operations worldwide.
About Dundee REIT
Dundee REIT is an unincorporated, open-ended real estate investment trust
and is Canada's leading provider of high quality, affordable business
premises. It is focused on owning, acquiring, leasing and managing mid-sized
urban and suburban office and industrial properties in Canada. Dundee REIT's
diversified portfolio consists of approximately 22.2 million square feet of
gross leasable area, located primarily in its target markets of Toronto,
Ottawa, Montréal, Calgary and Edmonton. Dundee REIT's portfolio is well
diversified by geographic location and tenant mix. For more information,
please visit www.dundeereit.com.
For further information:
For further information: GE Contact: Brent Feigenbaum, (212) 716-8929,
email@example.com; HLB Communications, Inc., Pamela Flores, (312)