FREDERICTON, Dec. 14, 2017 /CNW/ - Plaza Retail REIT ("Plaza or the "REIT") (TSX: PLZ.UN) today announced that it has sold a 50% non-managing interest in eight retail properties in New Brunswick and Nova Scotia to a syndicated group of investors for total proceeds of $17.3 million, including cash proceeds of $7.3 million and assumption of debt of $10.0 million. The net proceeds raised from this partial sale of mature properties will be recycled into new capital projects.
Plaza has a unique opportunity to leverage its core strengths in development and re-development to capitalize on the changing retail landscape in Canada. This includes converting big box retail properties into multi-unit retail plazas. The net proceeds of this sale will be applied to the REIT's strong pipeline of opportunities, and are expected to generate higher returns for unitholders.
Plaza is an open-ended real estate investment trust and is a leading retail property owner and developer, particularly in Eastern Canada. Plaza's portfolio at September 30, 2017 includes interests in 295 properties totaling approximately 7.7 million square feet across Canada and additional lands held for development. Plaza's properties include a mix of strip plazas, stand-alone small box retail outlets and enclosed shopping centres, anchored by approximately 90% national tenants.
This press release contains forward-looking statements, which can generally be identified by terms such as "will", "expects" or other similar expressions or phrases that do not relate to historical facts. Forward looking statements in this press release include those which relate to future application of the proceeds of the partial sale and the expectation that higher returns for unitholders will be generated. Forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of Plaza to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements contained in this press release, including those described in Plaza's Annual Information Form for the year ended December 31, 2016 and Management's Discussion and Analysis for the period ended September 30, 2017 which can be obtained on SEDAR at www.sedar.com. Forward-looking statements are based on a number of expectations and assumptions, including management's perceptions of historical trends, current conditions and future development and redevelopment opportunities. Although the forward-looking statements contained in this press release are based upon information currently available to management and what management believes are reasonable expectations and assumptions, there can be no assurances that forward-looking statements will prove to be accurate. Therefore, readers should not place undue reliance on forward-looking statements. All forward-looking statements speak only as of the date of this press release and Plaza undertakes no obligation to update such statements, except as required by law. These cautionary statements qualify all forward-looking statements contained in this press release.
SOURCE Plaza Retail REIT
For further information: For more information, please visit www.plaza.ca or contact: Floriana Cipollone, Chief Financial Officer, Plaza Retail REIT, Tel: 416.848.4583; Kim Sharpe, Director of Business Development, Plaza Retail REIT, Tel: 506.357.7901
Plaza Retail REIT is an owner of shopping malls and strip plazas throughout the Atlantic Provinces, Quebec and Ontario. Plaza owns interests in 108 properties comprising 4.9 million square feet of retail real estate.