WINNIPEG, Feb. 26 /CNW/ - Huntingdon Real Estate Investment Trust
("HREIT") (TSX: HNT.UN) today announced the conditional sale of the Cityplace
property in Downtown Winnipeg for $81.5 Million. The sale is conditional on,
among other things, the completion of due diligence by the purchaser on or
before March 13, 2009. The purchaser is the Manitoba Public Insurance
Corporation, who is the main tenant in the property.
The net sale proceeds in the amount of approximately $80.5 Million, after
expenses, will be primarily utilized to repay existing mortgage debt of HREIT.
The transaction is scheduled to close on May 1, 2009 and will substantially
reduce HREIT's level of mortgage debt. Upon the sale of Cityplace, and
assuming the use of the net cash proceeds to repay existing mortgage debt,
overall debt (including the face value of convertible debentures) will be
reduced by approximately 20% to approximately $322 Million.
RBC Capital Markets Real Estate Group acted as exclusive advisor to HREIT
on this transaction.
HREIT is a real estate investment trust, which is listed on the Toronto
Stock Exchange under the symbols HNT.UN (Trust Units) and HNT.DB.C (Series C
Convertible Debentures). HREIT owns 77 income producing office, industrial,
retail and standalone parking lot properties that have a total gross leaseable
owned area of 5.4 million square feet; two land parcels held for development
and other development and expansion opportunities within the existing
portfolio. The properties are located in Manitoba, Ontario, Saskatchewan,
Alberta, British Columbia and Northwest Territories. HREIT also owns a third
party property management business. For further information on HREIT, please
visit our website at www.hreit.ca.
The Toronto Stock Exchange has not reviewed or approved the contents of
this press release and does not accept responsibility for the adequacy or
accuracy of this press release.
For further information:
For further information: Arni Thorsteinson, President & Chief Executive
Officer; or Gino Romagnoli, Investor Relations, Tel: (204) 475-9090, Fax:
(204) 452-5505, Email: email@example.com