TORONTO, Feb. 1 /CNW/ - Scott's Real Estate Investment Trust ("Scott's REIT") announced pursuant
to the press release attached hereto as Schedule A that it received an
additional five-month extension on its mortgage which was originally
scheduled to mature on October 1, 2010, and for which Scott's REIT had
received a three-month extension at that time and a subsequent
one-month extension on December 31, 2010. The revised loan maturity is
now scheduled on July 1, 2011.
Scott's REIT also announced that it made an immediate $1 million payment
on the principal balance of the mortgage and that should Scott's REIT
choose to extend the loan beyond April 1, 2011, it will need to make an
additional $5 million payment on the principal loan outstanding.
The senior component of the Scott's REIT mortgage loan, with a balance
of $55 million, is the largest loan in the pool of mortgage loans for
Real Estate Asset Liquidity Trust Commercial Mortgage Pass-Through
Certificates, Series 2005-2 (the "Certificates"), issued under a short
form prospectus dated October 19, 2005 (the "Prospectus").
As a result of the extension of the Scott's REIT mortgage loan,
distributions to the holders of the applicable Certificates may be
affected, as described in the Prospectus, including holders of the
Class A-1 Certificates, who other than the $1 million and $5 million
payments referred to above, may not receive a distribution in respect
of principal related to the repayment of the principal balance of the
Scott's REIT mortgage loan until the July 2011 distribution date.
Real Estate Asset Liquidity Trust (REAL-T) was established to acquire
interests in residential and commercial mortgages and to issue
securities backed by such mortgages.
Scott's Real Estate Investment Trust granted additional five-month
TORONTO, Jan. 31 /CNW/ - Scott's Real Estate Investment Trust (TSX:
SRQ.UN) ("Scott's REIT"), today announced that it received a five-month
extension on its mortgage that is currently scheduled to mature on
February 1, 2011. The extension has been granted using the same terms
as the original loan - 4.9 per cent interest only, payable monthly. An
additional extension may be made available, if required.
As an act of good faith, Scott's REIT made an immediate $1 million
payment on the principal balance.
The mortgage is open for payment at any time during the five-month
extension period. Should Scott's REIT choose to extend the loan beyond
April 1, 2011, it will need to make an additional $5 million payment on
the principal loan outstanding. If the full extension is utilized, the
principal balance remaining on the mortgage will be $59 million on July
As part of the one-month extension given on December 31, 2010, Scott's
paid a total extension fee of 0.5 per cent on the remaining loan
balance which will be reduced if the loan of repaid earlier than July
The REIT is continuing its discussions with lenders to close the
financing for the $64 million loan and $20 million outstanding bridge
facility over the next five months. Although no assurance can be
provided that this will be concluded on favourable terms, the company
believes it is well advanced in negotiating the terms of the financing
and is encouraged by the positive discussions to date.
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
LP, 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.
For investor information, please contact:
Trish Moran, 416-624-5133, email@example.com
For media information, please contact:
Trevor Boudreau, 604-564-8209, firstname.lastname@example.org
SOURCE Real Estate Asset Liquidity Trust
For further information:
Phillipe Bergeron, Royal Bank of Canada, (416) 974-4658