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TRADING SYMBOL: RLX and RLX.A (TSXV)
CALGARY, Oct. 2 /CNW/ - Realex Properties Corp. ("Realex" or the "Corporation") announces the final stage to the internalization of its property management and leasing functions and the reorganization of its senior management. These measures are intended to better position the Corporation for the next stage in its growth strategy and include the following:
1) Effective October 1, 2009, Realex has internalized the property
management and leasing related to the initial 600,000 square feet
office and industrial portfolio acquired by Realex at the time of
going-public. These properties were previously managed by a property
management company owned by certain directors and officers of Realex.
As a result of this transaction, Realex will now operate, manage and
lease all of its owned properties (both wholly owned as well as
properties held in joint venture). The internalization completes a
key component of the Corporation's strategic goal set out in the
Spring of 2009 which included bringing in-house all property
management and leasing of its owned and/or managed properties. The
total amount of square footage owned and/or managed by Realex now
stands at over 3,000,000 square feet. The result of this
internalization of management is expected to save the Corporation
approximately $1,000,000 per annum on a go forward basis. The
transaction price was $2,000,000, and will be paid in annual
installments of $500,000 per year over four years. As this
transaction was a related party transaction, it was reviewed and
monitored by a committee of independent directors of the Corporation
who oversaw the discussions and negotiations throughout the entire
transaction. This related party transaction is exempt from the
provisions of the TSX Venture Policy 5-9, Insider Bids, Business
Combinations and Related Party Transactions.
2) As part of Realex's strategic plan established earlier this year,
Realex has also completed a reorganization of its senior management
which is intended to bring greater focus to each of its key
geographic regions and position the company for growth in its core
business of investing in, owning and operating office, industrial and
mixed use commercial properties across Canada. Effective October 1,
Mr. Mitch Brody will become Senior Vice President Western Canada
responsible for all operations, leasing and investment activity in
Western Canada (with particular focus on Alberta). Mr. Brody has been
with Realex since its inception and has over 20 years experience in
all facets of commercial property investment activities, development
and operations. Mr. Adrian Conrad will become Senior Vice President
Eastern Canada responsible for all investment, operations and leasing
activities in Eastern Canada (with particular focus on Ontario). Mr.
Conrad joined Realex following the acquisition of the Cora portfolio
(located in Kitchener Waterloo, Ontario) by Realex in September 2008.
Prior to this, Mr. Conrad was in charge of all operations and leasing
for The Cora Group. He has over 20 years experience in the real
As part of this restructuring of senior management, Mr. Patrick
Seward, Vice President Mergers and Acquisitions has left Realex
effective October 1, 2009. Mr. Seward had been with Realex for nearly
two years and was a key member of the team that helped Realex's
strong growth over that period.
3) Effective October 1, 2009, Mr. Marc Sardachuk will step down as
Executive Vice President. Mr. Sardachuk, who had been the
Corporation's Chief Executive Officer since the time Realex went
public in October 2006 until April of this year, will remain an
active member of Realex's Board of Directors and will continue to
play an active role in focusing the Corporation's business lines and
aiding the Corporation in its plans for growth through acquisitions
in the coming years.
"These changes are being made to bring greater senior management focus and responsibility to each of our key geographic regions where the core real estate skills of leasing and tenant relationships must be combined with building an organization of scale and size through strong management, acquisitions and capital markets initiatives.
Realex is well-positioned to address the challenges of the current economic climate and at the same time take advantage of the opportunities that we expect will arise over the coming months and years. We look forward to building on the positive changes and enhancements we've made within Realex and look forward to providing new opportunities for our employees and investors while establishing Realex as one of the premier commercial property companies in Canada," stated Mr. Tom Heslip, President and CEO of Realex.
Neither TSX Venture Exchange nor its Regulation Services Provider (as
that term is defined in the policies of the TSX Venture Exchange) accepts
responsibility for the adequacy or accuracy of this release.
This press release may contain forward looking statements and information within the meaning of applicable securities legislation. Although Realex Properties Corp. believes that the anticipated future results, performance or achievements expressed or implied by the forward looking statements and information are based upon reasonable assumptions and expectations, the reader should not place undue reliance on forward looking statements and information because they involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of Realex to differ materially from anticipated future results, performance or achievement expressed or implied by such forward looking statements and information. Accordingly, Realex cannot give any assurance that its expectations will in fact occur and cautions that actual results may differ materially from those in the forward looking statements. Factors that could cause actual results to differ materially from those set forth in the forward looking statements and information include: general economic conditions; local real estate conditions including the development of properties in close proximity to Realex's properties; timely leasing of newly-developed properties and re-leasing of occupied square footage upon expiration; dependence on tenants' financial condition; the uncertainties of real estate development and acquisition activity; the ability to effectively integrate acquisitions; interest rates; availability of equity and debt financing; the impact of newly-adopted accounting principles on Realex's accounting policies and on period-to-period comparisons of financial results; and other risks and factors described from time to time in the documents filed by Realex with the securities regulators in Canada, including in the Annual Information Form under the heading "Description of the Business - Risk Factors" and in Realex's annual Management's Discussion and Analysis. Realex undertakes no obligation to publicly update or revise any forward looking statements or information, whether as a result of new information, future events or otherwise, except as required by securities laws.
SOURCE REALEX PROPERTIES CORP.
For further information: For further information: Tom Heslip, President and Chief Executive Officer, Realex Properties Corp., Telephone: (403) 206-3149