BARRIE, ONTARIO--(Marketwired - Sept. 26, 2014) - Partners Real Estate Investment Trust ("Partners") (TSX:PAR.UN) is pleased to announce that it has closed on the transaction to sell three properties in Ontario to CT Real Estate Investment Trust ("CT REIT"). The purchase price of these properties will equate to $34.9 million, excluding transaction costs. Proceeds from this transaction will initially be used to reduce the amounts owed on Partners' revolving credit facility and then the proceeds will be used to reduce higher interest instruments. These actions will be pending the completion of further financing arrangements.

CT REIT will satisfy the $34.9 million purchase price via a combination of cash and the assumption of three mortgages totaling $19.2 million. The total proceeds from this transaction, net of costs, are expected to be $15.3 million. The mortgages bear interest at 3.4% and mature January 1, 2018. The properties are expected to have a weighted average going-in cap rate of 6.53%. This valuation is 2.6% higher than the Partners' current book value on the properties.

The three Ontario properties are all single buildings leased to the Canadian Tire Corporation, Limited ("CTC"), and are located in Brockville, Strathroy and Wasaga Beach. The properties comprise a total of 192,295 square feet and were originally built by CTC prior to being sold in 2008.

"We are pleased to announce this transaction, which will improve the strength of Partners' balance sheet," stated Jane Domenico, Partners REIT's acting Chief Executive Officer. "These were high-quality properties. However, this transaction not only allowed Partners REIT to secure attractive valuations for these assets, but also allowed us to do so in relatively rapid fashion. Our financial flexibility will benefit significantly as a result. As we move forward, Partners' Board of Trustees continues to work with both management and its advisor, National Bank Financial, to identify longer-term strategic alternatives for Partners' future."

About Partners REIT

Partners REIT is a growth-oriented real estate investment trust, which currently owns (directly or indirectly) 42 retail properties (including the Holyrood properties), located in British Columbia, Alberta, Manitoba, Ontario, and Quebec, aggregating approximately 3.2 million square feet of leasable space. Partners REIT focuses on expanding and managing a portfolio of retail and mixed-use community and neighbourhood shopping centres located in both primary and secondary markets across Canada.


Certain statements included in this press release constitute forward-looking statements, including, but not limited to, those identified by the expressions "expect", "will" and similar expressions to the extent they relate to Partners REIT. The forward- looking statements are not historical facts but reflect Partners REIT's current expectations regarding future results or events. These forward-looking statements are subject to a number of risks and uncertainties that could cause actual results or events to differ materially from current expectations. Although Partners REIT believes that the assumptions inherent in the forward-looking statements are reasonable, forward-looking statements are not guarantees of future performance and, accordingly, readers are cautioned not to place undue reliance on such statements due to the inherent uncertainty therein.

Contact Information:

Partners Real Estate Investment Trust
Investor Relations
1 (844) 474-9620 ext. 401

Renmark Financial Communications Inc.
Barry Mire
(514) 939-3989 or (416) 644-2020

Renmark Financial Communications Inc.
Robert Thaemlitz
(514) 939-3989 or (416) 644-2020