KEYreit's largest shareholder announces his intention to accept only Plazacorp shares and not cash

- Cites yesterday's Dundee Securities' report urging unitholders to accept Plazacorp's bid over Huntingdon's bid that expires April 11, 2013

TORONTO, April 10, 2013 /CNW/ - KEYreit (TSX: KRE.UN) announced today that John I. Bitove, the CEO of KEYreit and its largest unitholder, has advised that he intends to elect to receive the consideration for his units tendered under the $8.35 offer by Plazacorp Retail Properties Ltd. (the "Plazacorp Offer") solely in common shares of Plazacorp ("Plazacorp Shares").  As a result of this, more cash will be available to other KEYreit unitholders under the Plazacorp Offer.  Assuming that all other unitholders elect to tender to the cash alternative under the Plazacorp Offer, unitholders would effectively be entitled to receive approximately $5.00 in cash and 0.6862 of a Plazacorp Share.  Based on the closing price of the Plazacorp Shares on April 9, 2013 of $4.65, and assuming full proration, this implies an $8.18 per unit value for KEYreit unitholders under the Plazacorp Offer.

"Simply put, Plazacorp has placed a higher value on KEYreit than Huntingdon and I am fully committed to the Plazacorp Offer and to the future of KEYreit with Plazacorp," stated Mr. Bitove, " to show my commitment and belief in our future together I will be taking all of my consideration in shares of Plazacorp."

Referring to the Dundee Securities report issued on April 9, 2013, Mr. Bitove noted that he was aligned with Dundee's analysis that "1) PLZ's offer implies an economic value higher than $8.00 in the long-term, assuming PLZ shares trade back to their fundamental value; and 2) a successful HNT offer would create an illiquid stub entity at KEYreit with an uncertain value", two strong reasons to stick with Plazacorp.

How to Withdraw Units Tendered to the $8.00 Huntingdon Offer

Unitholders who have tendered units to the $8.00 Huntingdon Offer and who wish to obtain advice or assistance in withdrawing their units are urged to contact their broker or Kingsdale Shareholder Services Inc., the information agent retained by KEYreit, at 1-888-518-1562.

About KEYreit

KEYreit (TSX: KRE.UN) is Canada's premier small-box retail property owner with 225 properties in nine provinces across Canada. KEYreit's properties are well located and geographically diverse across Canada with the majority of all properties containing long-term quadruple net leases.

To find out more about KEYreit (TSX: KRE.UN), visit our website at www.keyreit.com.

Forward-Looking Statements

This press release contains certain information or statements that may constitute forward-looking information within the meaning of securities laws, which reflect the current view of KEYreit with respect to KEYreit's objectives, plans, goals, strategies, future growth, results of financial and operating performance and business prospects and opportunities. 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", "forecast", "predict", "potential", "continue" or other similar expressions concerning matters that are not historical facts. In particular, forward-looking information included in this press release includes, but is not limited to, statements with respect to the Plazacorp Offer, KEYreit's ability to lease vacant property units, execute planned acquisitions, collect minimum rents, diversify its tenant base, undertake land intensification projects, refinance loans and mortgages at their maturity, complete accretive acquisitions, and maintain or grow monthly cash distribution levels, and also with respect to the timing of such events. Forward-looking information should not be read as guarantees of future events, performance or results, and will not necessarily be accurate indications of whether, or the times at which, such events, performance or results will be achieved. All of the statements and information in this press release containing forward-looking information are qualified by these cautionary statements.

Forward-looking statements are based on information available at the time they are made, underlying estimates and assumptions made by management and management's good faith belief with respect to future events, performance and results, and are subject to inherent risks and uncertainties surrounding future expectations generally which could cause actual results to differ materially from what is currently expected. Such risks and uncertainties include, but are not limited to, the completion of the Plazacorp Offer, reliance on key tenants, risks associated with investment in real property, competition, reliance on key personnel, financing and refinancing risks, distributions, environmental matters, tenant risks, risks related to current economic conditions and other risk factors more particularly described in KEYreit's most recent Annual Information Form available on SEDAR at www.sedar.com. Additional risks and uncertainties not presently known to KEYreit or that KEYreit currently believes to be less significant may also adversely affect KEYreit.

KEYreit cautions readers that the list of factors is not exhaustive and that should certain risks or uncertainties materialize, or should underlying estimates or assumptions prove incorrect, actual events, performance and results may vary significantly from those expected. There can be no assurance that the actual results, performance, events or activities anticipated by KEYreit will be realized or, even if substantially realized, that they will have the expected consequences to, or effect on, KEYreit. The reader should not place undue importance on forward-looking information and should not rely upon this information as of any other date.

KEYreit disclaims any intention or obligation to update or revise any forward-looking information, whether as a result of new information, future events or otherwise, except as required under applicable securities laws.

SOURCE: KEYreit

Investor relations, please contact: 
Teresa Neto
Chief Financial Officer
416-361-9953
[email protected]

KEYreit unitholders, please contact:
Kingsdale Shareholder Services Inc.
1-888-518-1562 toll-free in North America
1-416-867-2272 outside of North America (collect calls accepted)
[email protected]

Media, please contact: 
Longview Communications Inc.
Alan Bayless 604-694-6035, [email protected]
Olena Lobach 416-649-8009, [email protected]