TORONTO: Charter Real Estate Investment Trust (the “REIT”) announces that it has filed a preliminary short form prospectus in each of the provinces and territories of Canada in connection with a marketed offering (the “Offering”) of trust units (“Units”) to raise proceeds of between $55 million and $60 million.
THE OFFERING: The offering price is $4.50 per Unit. The total size of the Offering and initial yield on the Units will be determined following a marketing period.
THE UNDERWRITERS: The REIT has engaged TD Securities Inc. as bookrunner and co-lead underwriter and RBC Dominion Securities Inc. as co-lead underwriter, together with a syndicate of underwriters, including CIBC World Markets Inc., BMO Nesbitt Burns Inc., Blackmont Capital Inc., National Bank Financial Inc., Scotia Capital Inc. and HSBC Securities (Canada) Inc.
OVER-ALLOTMENT OPTION: The underwriters have been granted an over-allotment option to acquire up to an additional 15% of the Offering for a period of 30 days following closing of the Offering.
USE OF PROCEEDS: The proceeds of the Offering are intended to be used to acquire the Cornwall Square property (described in the REIT’s press release of June 29, 2007) and to repay amounts outstanding under its two bridge facilities. The REIT will use any remaining proceeds, including any proceeds from the exercise of the over-allotment option, to acquire additional properties that meet its acquisition criteria and for general working capital purpose.
CLOSING: The closing of the Offering is expected to occur on or about August 3, 2007 and is subject to, among other things, regulatory approval. The acquisition of Cornwall Square will occur on or before closing of the Offering.
CHARTER REIT: Charter Real Estate Investment Trust is an open-ended real estate investment trust established under the laws of the Province of Ontario. Charter REIT is focused on acquiring a portfolio of retail and mixed-use retail real estate comprised of stable cash flow and value-add properties from both primary and secondary markets throughout Canada, with the principal goal of generating a reliable and growing yield for its investors. Charter REIT owns four commercial real estate properties located in Ontario and Quebec.
MORE INFORMATION: Ari Silverberg, President and Chief Operating Officer or Floriana Cipollone, Chief Financial Officer
Telephone: (416) 364-5705, Facsimile: (416) 861-8166
The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.
NOT FOR DISTRIBUTION IN THE UNITED STATES OR OVER UNITED STATES WIRE DISTRIBUTION SERVICES
This press release contains forward-looking statements with respect to the Offering and the use of proceeds thereof. Such forward-looking statements are qualified in their entirety by the inherent risks and uncertainties surrounding future expectations, including that the Offering will be completed. Forward-looking statements are based on a number of assumptions which may prove to be incorrect. Unless otherwise stated, all forward-looking statements speak only as of the date of this press release and the REIT undertakes no obligation to update such statements except as required by law.
|