REGINA, Dec. 12, 2013 /CNW/ - Assiniboia Farmland Limited Partnership (Assiniboia) is pleased to announce that it has signed an agreement to sell its farmland portfolio to Canada Pension Plan Investment Board (CPPIB). Under the terms of the agreement, CPPIB, through a subsidiary, will acquire Assiniboia's farmland portfolio for a purchase price of up to $128 million, pending final adjustments. The portfolio includes approximately 115,000 acres of farmland located throughout Saskatchewan. The existing management team will continue to manage the portfolio.
The sale has been approved by Assiniboia's Independent Review Committee, a committee established pursuant to the terms of the limited partnership agreement of the Partnership, and remains subject to satisfaction or waiver of the customary conditions precedent for transactions of this nature. The sale is scheduled to close in January, 2014.
Assiniboia President Doug Emsley said, "We believe this transaction is beneficial for Assiniboia Unitholders. We have always said that we would sell into a rising market and not wait until after the farmland market had peaked to create a liquidity opportunity for investors. The timing has culminated in an excellent selling opportunity for the Partnership."
About Assiniboia Farmland Limited Partnership
Headquartered in Regina, Saskatchewan, Assiniboia Farmland Limited Partnership was established in 2005 to provide investors with a turn-key opportunity to gain exposure to Saskatchewan farmland with the stated intention of creating a liquidity event for investors within a reasonable window of time. Assiniboia is the largest farmland investment fund in Canada, as measured by acres. For more information about Assiniboia, please visit www.assiniboiacapital.com.
About Canada Pension Plan Investment Board
Canada Pension Plan Investment Board (CPPIB) is a professional investment management organization that invests the funds not needed by the Canada Pension Plan (CPP) to pay current benefits on behalf of 18 million Canadian contributors and beneficiaries. In order to build a diversified portfolio of CPP assets, CPPIB invests in public equities, private equities, real estate, infrastructure and fixed income instruments. Headquartered in Toronto, with offices in London and Hong Kong, CPPIB is governed and managed independently of the Canada Pension Plan and at arm's length from governments. At September 30, 2013, the CPP Fund totalled C$192.8 billion. For more information about CPPIB, please visit www.cppib.com.
Caution Regarding Forward-Looking Statements
This news release contains certain forward-looking statements within the meaning of applicable Canadian securities legislation. In particular but without limitation, this news release includes statements regarding the successful closing of the Transaction and anticipated benefits from the Transaction. There is no certainty the Transaction will be completed. Forward-looking information involves known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those expressed or implied by such forward-looking information. In addition, the forward-looking information contained in this news release is based upon what management believes to be reasonable assumptions. Readers are cautioned not to place undue reliance on forward-looking information as it is inherently uncertain and no assurance can be given that the expectations reflected in such information will prove to be correct. The forward-looking information in this news release is made as of the date first set out above and, except as required under applicable securities legislation, Assiniboia assumes no obligation to update or revise such information to reflect new events or circumstances. When relying on forward-looking statements to make decisions, investors and others should carefully consider the foregoing factors and other uncertainties and should not place undue reliance on such forward-looking statements.
Additional information about the Partnership is available on SEDAR (www.sedar.com).
SOURCE: Assiniboia Farmland Limited Partnership 3
For further information:
President and Chief Executive Officer
Assiniboia Farmland Limited Partnership
Assiniboia Farmland Limited Partnership
Director, Media Relations