The Dallaire Family and Cominar Announce Temporary $74.0 Million Financing to Complete the Complexe Jules-Dallaire
September 20 2012 - 3:14PM
Marketwired
The Dallaire family and Cominar Real Estate Investment Trust
("Cominar") (TSX:CUF.UN) announced today that AM Total
Investissements (GP) ("AM Total"), which is a general partnership
wholly-owned by the Dallaire family, has concluded a temporary
financing by way of a monetization transaction on three million
units of Cominar for proceeds of approximately $74.0 million.
The monetization transaction involves a forward contract
concluded by AM Total with a Canadian chartered bank referencing
the closing price of Cominar units on September 20, 2012. Pursuant
to this financial instrument, AM Total, which holds 8,277,175 units
of Cominar, maintains the beneficial ownership and voting rights
attached to the monetized units.
The Dallaire family owns directly and indirectly a total of
9,010,078 units of Cominar or approximately 7.3% of the issued and
outstanding units, including the three million units being
monetized.
The Dallaire family will use the proceeds of the financing to
fund the development of Phase 2 of the Complexe Jules-Dallaire, a
project co-owned by Cominar and the Dallaire family. The Dallaire
family is building Phase 2 at its own risk, including ten storeys
of office space plus some 200 condominium units on fifteen floors
to be sold to individuals. Once the development of the ten storeys
of office space is complete, the Dallaire family may increase its
interest by up to 50% of the fair market value of the entire
Complexe by way of a cash consideration. Subsequently, the entire
property will be managed by Cominar.
"It continues to be important for me to seek to align the
interests of our family with those of our unitholders," said Mr.
Michel Dallaire of the Dallaire family and the President and Chief
Executive Officer of Cominar. "The transaction announced today was
designed to preserve this objective and further Cominar's
objectives," added Mr. Dallaire.
The Dallaire family has assumed all costs related to the
financing.
Dallaire family
The Dallaire family is comprised of the spouse, estate and
children of the late Jules Dallaire, the founder of Cominar, and
related entities, including related family trusts and AM Total
Investments (GP).
Cominar Portfolio as at September 20, 2012
Cominar is the third largest diversified real estate investment
trust in Canada and currently remains the largest commercial
property owner in the Province of Quebec. Cominar owns a real
estate portfolio of 482 high-quality properties, consisting of 123
office, 158 retail and 201 industrial and mixed-use buildings that
cover a total area of 35.0 million square feet in Quebec, Ontario,
the Atlantic Provinces and Western Canada. Cominar's objectives are
to pay growing cash distributions to unitholders and to maximize
unitholder value by way of proactive management and the expansion
of its portfolio.
Forward-Looking Statements
This press release may contain forward-looking statements with
respect to Cominar Real Estate Investment Trust and its operations,
strategy, financial performance and condition. These statements
generally can be identified by use of forward looking words such as
"may", "will", "expect", "estimate", "anticipate", "intends",
"believe" or "continue" or the negative thereof or similar
variations. The actual results and performance of Cominar Real
Estate Investment Trust could differ materially from those
expressed or implied by such statements. Such statements are
qualified in their entirety by the inherent risks and uncertainties
surrounding future expectations. Some important factors that could
cause actual results to differ materially from expectations
include, among other things, general economic and market factors,
competition, changes in government regulation and the factors
described under "Risk Factors" in the annual information form of
Cominar Real Estate Investment Trust. The cautionary statements
qualify all forward-looking statements attributable to Cominar Real
Estate Investment Trust and persons acting on its behalf. Unless
otherwise stated, all forward-looking statements speak only as of
the date of this press release and Cominar Real Estate Investment
Trust has no obligation to update such statements.
Contacts: Cominar Real Estate Investment Trust Mr. Michel
Dallaire, P.Eng. President and Chief Executive Officer (418)
681-8151
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