TORONTO, Jan. 30, 2014 /CNW/ - On January 30, 2014, Orange Capital, LLC ("Orange Capital") on behalf of Orange Capital Master I, Ltd. ("OCMI") which is an investment fund managed by it (collectively, the "Purchaser"), acquired ownership and control over 711,300 trust units (the "Acquired Units") of InnVest Real Estate Investment Trust ("InnVest REIT"). The Acquired Units represent approximately 0.76% of the issued and outstanding trust units of InnVest REIT ("Units") based on 93,809,805 Units issued and outstanding as of November 6, 2013 as stated by InnVest REIT in its management discussion & analysis for the third financial quarter ended September 30, 2013 (the "Outstanding REIT Units"). After giving effect to the acquisition of the Acquired Units, the Purchaser beneficially owns and controls 9,536,400 Units, representing approximately 10.17% of the Outstanding REIT Units.
The Purchaser acquired the Acquired Units through the open market for investment purposes. The Purchaser is considering and evaluating various means to enhance unitholder value at InnVest REIT. In connection with the foregoing, on January 26, 2014 the Purchaser sent a letter to the board of trustees of InnVest REIT (the "Board") advising the Board of the Purchaser's recent accumulation of Units and inviting the Board to engage in a dialogue with the goal of exploring ways to realize value for unitholders. Trustees were also reminded of their duty to act honestly, in good faith and in the best interests of InnVest REIT and its unitholders. In this regard, trustees were cautioned against taking any precipitous actions such as changes to the InnVest REIT management agreement, the issuance of units or dilutive asset acquisitions. As of the date of this news release, the Board has not responded to the Purchaser's request for such a dialogue.
The Acquired Units were acquired through the facilities of the Toronto Stock Exchange at an average price of $5.10 per Unit. The Purchaser may acquire additional Units through open market purchases or otherwise.
About Orange Capital, LLC
Orange Capital is a New York based investment firm. The firm is a value-oriented investor in event-driven securities. The firm allocates across the capital structure on an opportunistic basis. Orange Capital was co-founded in 2005 by Daniel Lewis and Russell Hoffman. Prior to founding the firm, Orange Capital's portfolio manager, Daniel Lewis, was a director with Citigroup's Global Special Situations Group.
Neither the issuance of this news release nor the filing by the Purchaser of an "early warning" report required to be filed in accordance with applicable Canadian securities laws is an admission that any individual or entity named or referred to in this news release or in an "early warning" report of the Purchaser owns or controls any described securities or is a joint actor with another individual or entity named or referred to in this news release.
The Purchaser's address and other contact information is set forth below. For further information, including to obtain a copy, once filed, of the "early warning" report required to be filed in accordance with applicable Canadian securities laws, contact Orange Capital at the address specified below.
SOURCE: Orange Capital, LLC
For further information:
Orange Capital, LLC
1370 Avenue of the Americas
New York, NY 10019
Attn: Daniel Lewis, Managing Member