FREDERICTON, NB, May 11 /CNW/ - Plazacorp Retail Properties Ltd
("Plazacorp") announced today that it has raised $1,718,000 in capital by
partnering with a number of private investors in the ownership of a new
development located in Shediac, New Brunswick.
Private investors have acquired a 90% interest in a newly formed limited
partnership for $1,718,000 in cash. Plazacorp will retain a 10% ownership
interest in the Partnership and will receive 50% of the cash flow generated by
the property in excess of an 8% preferred return. Plazacorp also has an option
to purchase, at fair market value, the 90% interest in the Partnership any
time following the seventh anniversary of the construction completion date.
Plazacorp President and CEO, Michael Zakuta said "We are very pleased to
be able to continue to raise new capital that will provide Plazacorp with
funds for other new development projects."
Approximately 39.2% of the Partnership is owned by certain directors and
insiders of Plazacorp. Plazacorp has relied on Sections 5.5(a) and 5.7(1)(a)
of Multilateral Instrument 61-101 which exempt issuers from obtaining formal
valuations and minority shareholder approval for this related party
transaction. The transaction is subject to approval of the TSX Venture
Plazacorp Retail Properties Ltd. is an owner of shopping malls and strip
plazas throughout the Atlantic Provinces, Quebec and Ontario. Plazacorp, as at
May 11, 2009 now owns interests in 97 properties comprising 4.3 million square
feet of retail real estate.
The TSX Venture Exchange has not reviewed and does not accept
responsibility for the adequacy or accuracy of this release.
For further information:
For further information: on Plazacorp, visit our website at www.plaza.ca
or contact: Earl Brewer, Chairman or Kim Sharpe, Director of Business
Development, (506) 451-1826