TORONTO, May 16, 2013 /CNW/ - Partners Real Estate Investment (Partners)
(TSX:PAR.UN) is urging unitholders to reject the gold proxy and vote in
favour of the clear and long-term vision proposed by the current
independent trustees by voting their BLUE proxy.
As announced on May 2, 2013, Partners terminated the management
agreement between LAPP Global Asset Management Corp. (External Manager)
which is a wholly-owned subsidiary of IGW, effective the close of
business on November 1, 2013. As the result, IGW has decided to propose
its own slate of nominees in an attempt to retain the management fees
paid to it through the External Manager by Partners.
In a letter to unitholders ahead of the Partners' annual meeting on June
6, 2013, Partners' independent trustees outlined the conflicts of
interest that the recently terminated External Manager has been engaged
in. The letter exposes IGW Public Limited Partnership (IGW), the entity
that controls the External Manager, for trying to take over the board
of trustees for its own benefit. The letter also sets out the reasons
why the Independent Trustees are of the view that Adam Gant and his
associates have put the interests of entities controlled or managed by
them, including League Asset Corp., the External Manager and its parent
(the dissident shareholder) ahead of your REIT on numerous occasions
only to be stopped by the Independent Trustees. The Independent
Trustees believe that the best way to protect your REIT is to
internalize management and bring in a strong, devoted, credible
internalize management team that will protect your capital.
"Your independent trustees have played a significant role in the
supervision and direction of the External Manager", the letter stated.
"Without the unusually high level of activity and detailed oversight
exercised by the independent trustees, the performance of the REIT
would not have been as good."
The letter announces that John van Hasstrecht, a trustee of Partners
since 2007 has been chosen to lead the transition. Partners explains
that the nominees up for re-election have the experience and knowledge
needed to continue the sustainable long-term growth of Partners - a
vision that is not shared by IGW. It goes on to say that, "Lowering
external management costs and growing your REIT with your independent
trustees is the best choice for protecting your interests and
In the letter Partners states the benefits of internalizing management:
Having a high quality management team focused ONLY on enhancing unit
Improved management and governance of Partners;
Elimination of the many conflicts of interest between the External
Manager and Partners; and
Reducing the cost of managing the REIT.
Attention Partners Unitholders:
Partners unitholders are urged to protect their investment by voting the
BLUE proxy. The voting deadline is 2:30pm (Toronto time) on Tuesday, June 4,
If you have voted a gold proxy, you can still change your vote, simply
by voting your BLUE proxy today. Your subsequent later dated BLUE
proxy will replace any prior dated gold proxy you may have voted. The
full text of the letter can be found on www.sedar.com.
Unitholders who do not have a BLUE proxy or who have questions about voting their proxy for the upcoming
meeting of unitholders should contact Kingsdale Shareholder Services
Inc. toll-free at 1-888-518-1565 or firstname.lastname@example.org.
About Partners REIT
Partners REIT is a growth-oriented real estate investment trust, which
currently owns (directly or indirectly) thirty-eight retail properties,
well-located in British Columbia, Alberta, Manitoba, Ontario and
Quebec, aggregating approximately 2.7 million square feet of leasable
space. Partners REIT focuses on expanding and managing a portfolio of
retail and mixed-use community and neighbourhood shopping centres
located in both primary and secondary markets across Canada.
SOURCE: Partners REIT
For further information:
Mills Investor Relations
Grant Hughes, Senior Vice President, Operations
Kingsdale Shareholder Services Inc.