ELAD Acquires Additional Units in Agellan Commercial Real Estate Investment Trust

TORONTO, March 6, 2017 /CNW/ - ELAD Canada Inc. ("ELAD") announced that on March 3, 2017 it acquired, through an indirect subsidiary, an aggregate of 80,700 units of Agellan Commercial Real Estate Investment Trust ("Agellan" or the "REIT"), a Toronto-based real estate investment trust which owns and operates a diversified portfolio of income producing industrial, office and retail properties in the United States and Canada.  Agellan is listed on the Toronto Stock Exchange under the symbol "ACR.UN".

The 80,700 units of Agellan ("Units") were acquired by ELAD Genesis Limited Partnership, an indirect wholly owned subsidiary of ELAD, for an aggregate cash purchase price of $936,071.58, being an average price of $11.5994 per Unit.  Together with the 80,700 units, ELAD has purchased an aggregate of 692,400 Units since its last early warning report filing dated January 17, 2017, for aggregate consideration of $7,955,258.17, based upon 452,400 Units purchased through the facilities of the TSX at an average price of $11.49 per Unit and 240,000 Units at a price of $11.45 per Unit in Agellan's bought deal public offering which closed on February 27, 2017.

As a result of the acquisition of these Units, ELAD will own or control, directly or indirectly, an aggregate of 6,074,246 Units, representing approximately 18.5% of the issued and outstanding Units.  At the time of its last early warning report filing, ELAD owned and controlled 5,381,846 Units, representing approximately 19.3% of the issued and outstanding Units before giving effect to Agellan's bought deal public offering on February 27, 2017, or approximately 16.4% of the issued and outstanding Units after giving effect to that offering.

"In light of Agellan's recent public offering we have decided to purchase additional units to maintain our investment in the REIT" said Rafael Lazer, Chief Executive Officer of ELAD, "We look forward to working with Agellan to enhance unitholder value."

ELAD is acquiring the Units for investment purposes, and may acquire additional Units or may dispose of any or all of its Units, on the open market or otherwise, subject to various factors including ELAD's determinations from time to time as to whether the trading price of the Units adequately reflects the value of the Units in relation to Agellan's activities and future prospects.  ELAD intends to engage with members of the board of directors of Agellan regarding Agellan, its business and prospects, board composition and potential means for enhancing unitholder value.

Agellan is located at 156 Front Street West, Suite 303, Toronto, Ontario, M5J 2L6. ELAD is located at 2235 Sheppard Ave. E., Suite 1700, Toronto, ON, M2J 5B5.  

About ELAD

ELAD Canada Inc. pursues a corporate strategy to maximize asset and shareholder value.  Established in 1997, the company entered the Canadian market by owning and providing asset management services for a significant real estate portfolio of varied asset classes that included approximately six million square feet of commercial space and over 17,000 residential units.  More recently, the company has focused its activities in mid- and high-rise condominium development and master planned communities.  ELAD Canada Inc. is part of the ELAD Group real estate conglomerate that owns income producing properties and has development projects spanning three continents.  The group has developed successful condominiums, hotels and mixed-use projects and has made its mark as a significant developer of ultra-luxury properties in New York City.  The ELAD Group is focused on the acquisition, development and conversion of architecturally significant residential and commercial properties in key markets throughout North America.


For further information: please contact Rafael Lazer, Chief Executive Officer, by telephone at (416) 223-4403

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ELAD Canada Inc.

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