Partners REIT Issues Proxy Circular Highlighting Benefits of Internalizing Management

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May 06, 2013, 21:04 ET

Shareholders Urged to Vote Their BLUE Proxy

TORONTO, May 6, 2013 /CNW/ - Partners Real Estate Investment (Partners REIT) (TSX: PAR.UN) filed a proxy circular today ahead of its upcoming annual meeting of unitholders.

Partners REIT unitholders will elect independent trustees for the coming year on Thursday, June 6, 2013, at 2:30 p.m. (Toronto time)

In an accompanying letter to unitholders Louis Maroun, Partner REIT's chairman of the board of trustees, highlights the importance of internalizing management.

"We know that with the right team, we can really maximize value for everyone invested in Partners REIT", Mr. Maroun says. "We believe the current manager has too many conflicts of interest to be effective in managing the REIT." The full text of the letter is appended below.

Partners REIT previously announced the termination of its current management agreement between LAPP Global Asset Management Corp., and a wholly-owned subsidiary of IGW Public, effective November 1, 2013.

Partners REIT unitholder are urged to vote their BLUE proxy or VIF ahead of the deadline June 4, 2013.

If you have any questions or need assistance completing your BLUE proxy or VIF, please contact Kingsdale Shareholder Services Inc., the proxy solicitation agent, at 1-888-518-1565 or [email protected].

Full text of Mr. Maroun's letter:

PARTNERS REAL ESTATE INVESTMENT TRUST

May 6, 2013

Dear Unitholders:

It is my great pleasure to invite you to the annual meeting of Partners Real Estate Investment Trust (the REIT) as described in the attached notice and proxy circular. As you may already know, now more than ever is a vital time to protect your investment in the REIT. At the upcoming annual meeting on June 6, 2013, you will be asked to elect trustees of the REIT for the ensuing year. The independent trustees and IGW Public Limited Partnership (IGW Public), the entity that controls the Manager, have different visions with respect to the management of the REIT. Your vote is extremely important. Please carefully read the accompanying proxy circular before voting so you understand how significantly your support will help in the future success of the REIT.

We ask you to vote for four independent trustees with extensive knowledge and experience of the REIT and in managing other REITs. Your independent trustees will break the chains of the management agreement and establish a new internalized management team over the next six months fully dedicated to managing the growth of the REIT and focussed on maximizing unitholder value. Increasingly, the global investment community looks more favourably on REITs with internalized management rather than external Managers as an internalized management structure eliminates potential or existing conflicts of interest and fully aligns the management team with all unitholders. However, if your independent trustees are not re-elected then we cannot ensure the planned performance of the REIT that is required to support long-term, sustainable and growing monthly cash distributions and enhanced unitholder value.

As we announced on May 2, 2013, your independent trustees terminated the management agreement between LAPP Global Asset Management Corp., a wholly-owned subsidiary of IGW Public, effective the close of business on November 1, 2013. This decision was made in the best interest of all unitholders and we believe that the internalization of management will:

provide for the establishment of a high quality internalized management team focused on enhancing unitholder value;
result in improved management and governance of the REIT;
eliminate existing conflicts of interest between the Manager and the REIT;
deliver required resources through dedicated full-time employees focused exclusively on the REIT;
reduce the annual cost of managing the REIT; and
improve the REIT's competitiveness in acquiring properties through the elimination of acquisition fees paid to the Manager.

The Independent Trustees have been informed that IGW Public plans to propose its own slate of four nominees with the intention of maintaining itself as an outside manager. This is likely in reaction to the Manager's pending loss of fees under the Management Agreement that is being terminated. Your support is important more than ever to prevent IGW Public from stopping the proposed internalization and prioritizing its own best interest rather than in the best interest of all unitholders of the REIT.

Your independent trustees urge you to vote your BLUE proxy well in advance of the June 4, 2013 proxy deadline. Your participation at this meeting is important. We encourage you to exercise your right to vote, which can easily be done by following the instructions provided in the proxy circular. Regardless of the number of units you own, please vote your BLUE proxy to break the chains and express your support.

For more information please visit www.partnersreit.com. We encourage you to visit our website before attending the meeting.

We look forward to seeing you on June 6, 2013.

Yours very truly,

Louis J. Maroun FRICS
Chair of the Board of Trustees
Partners Real Estate Investment Trust

SOURCE: Partners REIT