Business
Granite Real Estate Inc. Announces Shareholder Meeting to Approve REIT Conversion
TORONTO, Oct. 17, 2012 /CNW/ - Granite Real Estate Inc. (TSX: GRT; NYSE: GRP) (''Granite'...
About this update from Granite Real Estate Investment Trust
[{"type":"text","content":"\n\n\n\n\n\nTORONTO, Oct. 17, 2012 /CNW/ - Granite Real Estate Inc. (TSX: GRT; NYSE: GRP) (''Granite'' or the ''Company'') is pleased to announce that on November\n 15, 2012 the meeting for shareholders to consider approving the\n Company's conversion to a real estate investment trust (the \"REIT\n Conversion\") will take place at the Metro Toronto Convention Centre,\n 255 Front Street West, Meeting Room 206F, Toronto, Ontario, Canada at\n 10:00 a.m. The board of directors of the Company is unanimously\n recommending that shareholders vote in favour of the REIT Conversion.\n\n\nThe REIT Conversion is a key component of the Company's strategic plan\n announced in October 2011 and was expected, at that time, to result in\n a significant reduction in annual cash income taxes estimated to be\n approximately $8 million. The REIT structure, as now proposed, is\n expected to reduce Granite's cash income taxes for 2013 by\n approximately $11 million. If the REIT Conversion is approved, the\n Company expects to be a REIT on or about December 31, 2012 and\n beginning in fiscal 2013 the new REIT will commence monthly\n distributions of $0.175 per stapled unit (an increase in the annual\n distribution to $2.10 per stapled unit from the current annual dividend\n of $2.00 per share). The first distribution to be declared for the\n month of January 2013 will be paid on or about February 15, 2013.\n\n\nGranite has mailed a notice of special meeting of shareholders and\n management information circular / proxy statement (the \"Circular\") in\n respect of the special meeting of shareholders.  As noted above, the\n meeting has been called to consider and, if thought fit, approve, among\n other things, a special resolution approving a plan of arrangement\n under the Business Corporations Act (Québec) providing for the conversion of the Company from a corporate\n structure to a \"stapled unit\" REIT structure.\n\n\nThe REIT Conversion is subject to customary conditions and approvals,\n including court approval.  Details of the REIT Conversion are described\n in the Circular, which is available on SEDAR at www.sedar.com, on EDGAR at www.sec.gov  and on the Company's website at www.graniterealestate.com.  Persons with questions about the REIT Conversion are encouraged to\n visit the \"REIT Conversion Frequently Asked Questions...