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Plaza Retail REIT Partners with Canadian Pension Fund to Increase its Interests and Returns in Two Moncton-area Plazas
Plaza Retail REIT Partners with Canadian Pension Fund to Increase its Interests and Return...
About this update from Plaza Retail Reit
[{"type":"text","content":"\n\n\n\nPlaza Retail REIT Partners with Canadian Pension Fund to Increase its Interests and Returns in Two Moncton-area Plazas\n\n/* Style Definitions */\nspan.prnews_span\n{\nfont-size:8pt;\nfont-family:\"Arial\";\ncolor:black;\n}\na.prnews_a\n{\ncolor:blue;\n}\nli.prnews_li\n{\nfont-size:8pt;\nfont-family:\"Arial\";\ncolor:black;\n}\np.prnews_p\n{\nfont-size:0.62em;\nfont-family:\"Arial\";\ncolor:black;\nmargin:0in;\n}\n\n\n\n\n\n\n\nCanada NewsWire\nFREDERICTON, Feb. 1, 2018\n\n\n\nFREDERICTON, Feb. 1, 2018 /CNW/ - Plaza Retail REIT (TSX: PLZ.UN) (\"Plaza\" or the \"REIT\") today announced that it has increased its interest in each of two Moncton-area plazas from 10% to 50%, with a Canadian pension fund buying the other 50% on a co-ownership basis. Both properties were previously co-owned with Plaza through two retail syndications.  The REIT's incremental gross investment is approximately $17.0 million, and its incremental net investment is approximately $5.6 million.  This transaction reflects Plaza's strategy to capitalize on opportunities within its existing portfolio and enter into value-enhancing transactions that both increase the assets of the REIT and provide for higher unitholder returns.\n\n\"We are pleased to have structured a deal whereby we increase our ownership from 10% to 50% in these two assets that we have been operating for many years and as a result we grow our FFO, AFFO and cash flow per unit,\" said Michael Zakuta, President and CEO of the REIT.\n\nPlaza owned its previous 10% interests in the 205,148 square foot Northwest Centre and the 65,842 square foot Shediac West Plaza since 2003 and 2009, respectively. Accordingly, the REIT knows the properties well and management is very comfortable increasing its interest. As a result of the change to 50% ownership, Plaza will account for the results of the plazas on a proportionate consolidation basis, as opposed to the previous equity/fair value method.\n\nThe previous syndications for these two properties, whose interests were bought out as a result of these transactions, included certain related parties of Plaza – namely; Earl Brewer, Michael Zakuta, Edouard Babineau and Denis Losier.  A Special Committee of Independent Trustees of Plaza was formed to review and approve the related party transactions.\n\nAbout PlazaPlaza is an open...