RiskMetrics Recommends Unitholders Vote FOR the Combination
WINNIPEG, MB and RICHMOND, BC, Nov. 16 /CNW/ - Huntingdon Real Estate Investment Trust ("HREIT") (TSX: HNT.UN) and IAT Air Cargo Facilities Income Fund ("IAT") (TSX: ACF.UN) announced today that RiskMetrics Group ("RiskMetrics"), North America's leading independent proxy and corporate governance advisory firm, recommends that unitholders of both HREIT and IAT vote FOR the resolutions to approve the combination (the Combination) of HREIT and IAT pursuant to which HREIT will acquire all outstanding IAT units.
"We are pleased to have the support of RiskMetrics, whose recommendations are based on the highest standards of governance practices and are followed by hundreds of major institutional investment firms, mutual funds and other fiduciaries," said Gary Goodman, Trustee and Chairman of HREIT's Special Committee.
In its report for HREIT, dated November 14, 2009, RiskMetrics determined that the Combination is expected to reduce HREIT's leverage, increase free cash flow and create a larger, more efficient and competitive combined entity in terms of size, scope, diversification, synergies, cost savings and a lower cost of capital following the completion of the Combination, and that increased management accountability is expected to result. Similarly, the corresponding IAT report notes that the Combination is expected to lower the cost of capital and increase the scale and diversification of IAT.
RiskMetrics also recommended both HREIT and IAT unitholders vote FOR the amendments to the respective declarations of trust and that HREIT's unitholders vote FOR the resolution to fix the number of Trustees at seven and elect W. John Dawson, D. Greg Doyle, Stephen J. Evans, Zachary R. George, Gary M. Goodman, R. Scott Hutcheson and David A. Lorber as Trustees.
HREIT is a real estate investment trust, which is listed on the TSX under the symbols HNT.UN (Trust Units) and HNT.DB.C (Series C Convertible Debentures). HREIT owns 68 income producing office, industrial, retail and standalone parking lot properties that have a total gross leaseable owned area of 4.7 million square feet; two land parcels held for development and other development and expansion opportunities within the existing portfolio. The properties are located in Manitoba, Ontario, Saskatchewan, Alberta, British Columbia and Northwest Territories. HREIT also owns CRESI Inc., a property management business. More information about HREIT can be found on its website at www.hreit.ca.
IAT is an unincorporated, open-ended mutual fund trust under the laws of British Columbia, which is listed on the TSX under the symbol ACF.UN. IAT owns all of the shares of International Aviation Terminals Inc. ("IAT Inc.") and IAT Management Limited Partnership ("IAT Management LP"). IAT, IAT Inc. and IAT Management LP, specialize in the ownership, construction, management and marketing of aviation-related facilities. IAT currently owns, leases and manages approximately 1.1 million square feet of air cargo and aviation related facilities, on ground-leased land at five of Canada's leading international airports. Approximately 65% of IAT's holdings are located at Vancouver International Airport, Canada's second largest airport, with the balance of the facilities located in Calgary, Edmonton, Saskatoon and Winnipeg. More information about IAT can be found on its website at www.iat-yvr.com.
This news release contains certain forward-looking statements relating to the expected timing of the mailing and availability of the Information Circular and the meeting of unitholders of HREIT and IAT. These statements, which can be identified by the use of the word "expected", involve various risks and uncertainties. There can be no assurance that the Information Circular will be mailed or available as contemplated. These forward-looking statements represent expectations of HREIT and IAT as of the date hereof, and are subject to change after such date. HREIT and IAT disclaim any intention or obligation to update or revise any forward-looking statements whether as a result of new information, future events or otherwise, except as required under applicable securities laws. This news release shall not constitute an offer to sell, or the solicitation of an offer to buy, any securities in any jurisdiction. The issuance of this press release is not an admission that any entity named in this press release owns or controls any units of HREIT or IAT or is a joint actor with any other entity.
The Toronto Stock Exchange has not reviewed or approved the contents of this press release and does not accept responsibility for the adequacy or accuracy of this press release.
SOURCE HUNTINGDON REAL ESTATE INVESTMENT TRUST
For further information: For further information: IAT CONTACT: Zachary R. George, President and Chief Executive Officer, Tel: (604) 249-5119, Fax: (604) 249-5101, Email email@example.com; HREIT CONTACT: Gary Goodman, Trustee and Chairman of Special Committee, Tel: (416) 929-0108, Fax: (416) 646-2673, Email: firstname.lastname@example.org