FREDERICTON, NB, June 15 /CNW/ - Plazacorp Retail Properties Ltd. (TSXV: PLZ) announced today it has approved an agreement to purchase the shares of Plaza Group Management Limited (PGML), its property management company.
Plazacorp will purchase the shares of PGML at book value estimated to be $120,000. The acquisition will consolidate the company's management team. The transaction will close on June 30, 2011.
Plazacorp has approved an increase in its annual dividend from 20.25 cents to 21.00 cents per common share effective August 2011. This 3.7% dividend increase represents the tenth dividend increase in nine years.
Earl Brewer, shareholder of PGML and Chairman of Plazacorp said "The purchase of the management company by Plazacorp at book value, which we believe to be unprecedented in Canadian real estate, will reduce overall management costs, streamline our operations and grow dividends. We have contemplated this transfer to Plazacorp for some time, with the consistent growth and financial strength of the company, this is the most appropriate time to complete the transaction."
The transaction is subject to regulatory approval, due diligence and is a related party transaction as PGML is indirectly owned by Earl Brewer and Michael Zakuta, directors, officers and major shareholders of PLZ.
Plazacorp Retail Properties Ltd. is an owner of shopping malls and strip plazas throughout the Atlantic Provinces, Québec and Ontario. Plazacorp owns interests in 112 properties comprising 5.1 million square feet of retail real estate.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
SOURCE PLAZACORP RETAIL PROPERTIES LTD.
For further information: on Plazacorp, visit our website at www.plaza.ca or contact: Earl Brewer, Chairman or Kim Sharpe, Director of Business Development, 506-451-1826